Asian iron ore prices remain firm as market trades higher January 6, 2012
London Seaborne iron ore prices destined for Asia continued to rise Friday due to stronger demand from traders who are actively taking positions. Spot 62%-Fe prices have risen $3/dmt in the space of a week reaching $142/dmt CFR North China on Friday. This is a rise of 50 cents since Thursday, and a $3/dmt increase since December 30, according to Platts data.
Australian miner Rio Tinto sold a 165,000 mt cargo of 61.5%-Fe Australian Pilbara Blend fines at $140.50/dmt CFR Qingdao through a tender Friday. This cargo is slated to load January 20-29. Five trading sources said Chinese state-own enterprise Sinosteel Trading Co. bought the PB fines cargo.
"The Chinese traders are betting their luck that steel mills will embarked another bout of restocking activities ahead of the Chinese Lunar new year," said a Singapore based trader.
"Some smaller steel mills in Fujian and Guangdong are running low on inventories, some only have 10-15 days worth of raw materials left and they are the ones who are willing to pay higher for the spot materials," said a Fujian trading source.
However, buying interest was still limited.
"Buyers are looking for cargoes but are either not willing to give prices, or keeping their bids at the same levels," said a trader in India.
Separately, another Chinese trading firm General Nice was offering a combined capsizes cargo at PB fines and lumps at $141/dmt CFR North China and $146/dmt CFR North China, cargo loading January 16-26.
This iron ore commentary is an abridged version. Full commentary is available to all Platts Steel Markets Daily subscribers
Source: Iron Ore Price Assessments, Daily Charts, Steel News – Metals | Platts Platts Energy Information Leaders
AGO Price at posting:
$2.79 Sentiment: Buy Disclosure: Held
