Iron Ore – China experiencing a rise in iron ore import...

Iron Ore – China experiencing a rise in iron ore import prices

China’s Iron ore import prices reached US$81/t (63.5% ferrous content) up 4-5% on higher shipping charges. Shipping cost appreciated as China ’s iron ore demand has recovered slightly after announcement of US$586 stimulus plan.
Iron ore imports in China rose 6.18% month on month in December 2008 having reached 444mt a year up almost 16% YoY
Baltic Dry Index (BDI) enhanced to 920 on 15th of January 2009 from the low of 671 in the beginning of December 2008 representing almost 40% gain in freight prices, recently fuelled by Chinese buyers of iron ore.
Many market participants believe that iron ore demand would continue to grow until the lunar New Year starting January 26th and could cool off after that. However, recent increase in Indian offer price for iron ore to US$84-86/t (63.5% grade) up 2-4% from last week indicate confidence in demand after the Chinese holidays.