Iron Ore-Key index at record in thin trade

Thu Feb 3, 2011 7:07am GMT
* Indian exporters see higher prices after China holiday
* Indian futures flat to higher, volumes lean (Adds Indian futures)
By Manolo Serapio Jr

SINGAPORE, Feb 3 (Reuters) - A key iron ore price index edged up to a record although business is expected to remain light on Thursday with top buyer China off the market for the Lunar New Year break.
Platts' 62 percent iron ore index IODBZ00-PLT rose 50 cents to $187.25 a tonne, including freight, on Wednesday. Two similar indexes by Metal Bulletin .IO62-CNO=MB and Steel Index .IO62-CNI=SI were steady at $183.36 and $185.60, respectively.
The indexes, based on spot transactions in China, are used by global miners like Vale and Rio Tinto in deciding rates for quarterly contracts.

"Buying from Chinese players have almost stopped but Indian exporters are bullish and expect prices to open higher post-Chinese New Year holidays," said Dhruv Goel, managing partner at iron ore trader Steelmint in India's eastern state of Orissa.
Chinese markets are shut for the week-long Lunar New Year holiday that began on Wednesday. They will reopen on Feb. 9.
Iron ore forward swaps mostly gained on thin volumes on Wednesday, although prices remained below those of the indexes, pointing to caution among buyers on the near-term direction of spot prices.

The Singapore Exchange-cleared February contract rose 87 cents to $183 a tonne and March added 50 cents to $174. April slipped 50 cents to $165.50.
In India, iron ore futures were flat to firmer although volumes remained lean on the fifth day since two commodity exchanges there launched the world's first futures contract for the steelmaking ingredient.
At 0630 GMT, 62 percent ore for March delivery on the Indian Commodity Exchange rose 1 percent to 8,014 rupees ($176) a tonne, including freight cost to northern China.
On the Multi Commodity Exchange, March 62 percent ore was nearly flat at 7,516 rupees a tonne, free on board.

Indian exporters are eyeing a court ruling in mid-February on whether a ban on iron ore exports from the southern Karnataka state will be lifted.
Indian iron ore exports fell for the sixth straight month in December because of the ban.
($1 = 45.57 rupees) (Editing by Ed Lane, sourced:reuters)