Iron ore price, page-1109

Reuters said that Iron Ore demand will be high for at least the next few months....

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Chinese iron ore futures pulled back from a three-year high on Tuesday as steel prices retreated after gaining 13 percent so far this month on Beijing's renewed push to slim down a bloated industry.

But expectations that China will continue to reduce excess steel capacity could keep prices of the metal elevated, spurring mills to replenish stocks of raw materials including iron ore.

The most-traded iron ore on the Dalian Commodity Exchange DCIOcv1 jumped more than 4 percent to hit an intraday peak of 664.50 yuan ($96) a tonne, its strongest since December 2013. It later trimmed gains to close at 638 yuan, up 0.2 percent.
Rebar on the Shanghai Futures Exchange SRBcv1 dropped 1 percent to end at 3,284 yuan a tonne, after initially gaining as much as 2.5 percent.

Higher steel prices have increased the profitability of Chinese mills significantly and "that's certainly given them confidence to restock raw materials such as iron ore," said Daniel Hynes, commodity strategist at ANZ.

Monday's spike in iron ore futures helped lift spot prices to their highest in more than two years, with some traders building up steel inventories on expectations of further price increases.

"It's driven by steel mills and traders and certainly there's expectation within that market of further capacity cuts" that could push steel prices higher, said Hynes.
"At the same time they are seeing relatively solid growth in demand from a variety of infrastructure programs that the (Chinese) government has implemented or boosted spending in over the past few months."