Bloomberg cited Mr Michael Heffernan a client adviser with Austock Securities Ltd as saying that iron ore may extend its increase this month as steelmakers in China, the world’s biggest consumer, return to the market.
He said that “The current recovery is a reaction to the decline last month. It comes down to sentiment. You can detect a more positive air in the market than there was earlier this year.”
Mr James Glenn commodities analyst with National Australia Bank Ltd in Melbourne said “There was probably a bit of an over-correction last month, so the market has responded. Buyers had been sitting back and now they’re seeing an opportunity to take advantage of the lower price.”
He said that Rates may hover from USD 130 to USD 140 a tonne for the rest of the year. Iron ore for immediate delivery at Tianjin port gained USD 2.90 or 2.2% to USD 137.70 on November 11.
Steel-product exports from China climbed 11% to 41 million tonnes in the first 10 months, while iron ore imports gained 11% to 557.9 million tonnes.
(Sourced from Bloomberg)