Mon Jul 25, 2011 | By Reuters
* Spot offers steady for one week
* Traders await clear market signs for prices
* Swaps edge down for near-term contracts
SHANGHAI, July 25 (Reuters) - Spot iron ore prices stood steady on Monday as traders looked for clearer direction on the market at the beginning of the week, amid increasing reluctance to buy the raw material at rising prices and easing Shanghai rebar futures.
Steelmakers in the world's top producer China have been on track to replenish stocks for two weeks, buoyed by strong steel production and rising steel prices, while gains have slowed since last week as flat steel product mills have faced weaker demand and were thus reluctant to accept rising offers.
"There are no big pricing movements on the first day of the week, and we are looking for clear clues for prices," said an iron ore trader in Shenzhen.
China's steel association expected the country's steel output to stay strong in the second half of this year as investment in infrastructure and social housing underpins demand, while flat steel producers may face a worsening supply glut.
"There has been a tremendous evaluation and resistance to the higher offers as the buyers (mainly the traders) are finding it difficult to take positions considering the not so active response from the end users," iron ore broker London Dry Bulk said in a note.
Offers for 62-grade Newman fines from Australia were steady at $179-$181 a tonne, including freight, on Monday, and quotes for Indian 63.5/63 ore were also unchanged at $182-$184, Chinese industry consultancy Umetal said, both keeping steady for nearly one week.
Shanghai rebar futures eased slightly on Monday, with the October contract off 0.28 percent to 4,911 yuan ($762)per tonne by the morning close. Rebar futures still traded at levels close to their highest in more than two months.
Iron ore price indexes, based on spot deals in China and used by global miners as a basis in deciding supply contract prices, mainly steadied on Friday.
The Steel Index for ore with 62-percent iron content .IO62-CNI=SI stood unchanged at $175.10 a tonne and the Platts index IODBZ00-PLT for similar gauge was also unchanged at $176.75 a tonne.
Metal Bulletin's 62-percent Fe iron ore index .IO62-CNO=MB rose 80 cents to $174.26 a tonne.
Singapore Exchange-cleared iron ore swaps <0#SGXIOS:> were mixed on Friday, with near-term contracts falling by less than half a dollar.
The iron ore swaps market has attracted an increasing number of banks and financial firms as well as growing interest from automakers and other steel buyers, even while most steelmakers are reluctant to use hedging instruments. ($1 = 6.445 yuan)
* Spot offers steady for one week
* Traders await clear market signs for prices
* Swaps edge down for near-term contracts
SHANGHAI, July 25 (Reuters) - Spot iron ore prices stood steady on Monday as traders looked for clearer direction on the market at the beginning of the week, amid increasing reluctance to buy the raw material at rising prices and easing Shanghai rebar futures.
Steelmakers in the world's top producer China have been on track to replenish stocks for two weeks, buoyed by strong steel production and rising steel prices, while gains have slowed since last week as flat steel product mills have faced weaker demand and were thus reluctant to accept rising offers.
"There are no big pricing movements on the first day of the week, and we are looking for clear clues for prices," said an iron ore trader in Shenzhen.
China's steel association expected the country's steel output to stay strong in the second half of this year as investment in infrastructure and social housing underpins demand, while flat steel producers may face a worsening supply glut.
"There has been a tremendous evaluation and resistance to the higher offers as the buyers (mainly the traders) are finding it difficult to take positions considering the not so active response from the end users," iron ore broker London Dry Bulk said in a note.
Offers for 62-grade Newman fines from Australia were steady at $179-$181 a tonne, including freight, on Monday, and quotes for Indian 63.5/63 ore were also unchanged at $182-$184, Chinese industry consultancy Umetal said, both keeping steady for nearly one week.
Shanghai rebar futures eased slightly on Monday, with the October contract off 0.28 percent to 4,911 yuan ($762)per tonne by the morning close. Rebar futures still traded at levels close to their highest in more than two months.
Iron ore price indexes, based on spot deals in China and used by global miners as a basis in deciding supply contract prices, mainly steadied on Friday.
The Steel Index for ore with 62-percent iron content .IO62-CNI=SI stood unchanged at $175.10 a tonne and the Platts index IODBZ00-PLT for similar gauge was also unchanged at $176.75 a tonne.
Metal Bulletin's 62-percent Fe iron ore index .IO62-CNO=MB rose 80 cents to $174.26 a tonne.
Singapore Exchange-cleared iron ore swaps <0#SGXIOS:> were mixed on Friday, with near-term contracts falling by less than half a dollar.
The iron ore swaps market has attracted an increasing number of banks and financial firms as well as growing interest from automakers and other steel buyers, even while most steelmakers are reluctant to use hedging instruments. ($1 = 6.445 yuan)
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