Tuesday, 15 Nov 2011
Reuters reported that iron ore may stretch its winning streak to a third week, supported by Chinese buying interest and tight supply in the spot market as traders withhold some cargoes, waiting for prices to rise further.
The steelmaking raw material has gained nearly 18% in the past 10 trading days as steel mills in China, the world's biggest iron ore buyer, replenished inventories after prices fell more than 30% in October. But some physical traders have been holding back cargoes, hoping to sell later when prices turn even higher.
An iron ore trader in Singapore said that "Traders are buying aggressively, but whatever they're buying they're just keeping it with an intention to sell later at a higher price. Everybody's lost a lot of money when prices dropped sharply so now they feel the market will continue to turn up and are offering at levels higher than where the market is."
Chinese consultancy Umetal said that offer prices for Australian 63 grade Newman iron ore fines rose a dollar to USD 143 to USD 145 a tonne, including freight and Indian 63.5/63 grade fines increased USD 3 to USD 142 to USD 145.
It said that restocking by smaller Chinese steel mills had boosted their average iron ore inventory to 26 days of use now from 21 days at the end of October, Macquarie said in a note. That is still below the 28 to 33 day inventory range from March to September.
(Sourced from Reuters)
Reuters reported that iron ore may stretch its winning streak to a third week, supported by Chinese buying interest and tight supply in the spot market as traders withhold some cargoes, waiting for prices to rise further.
The steelmaking raw material has gained nearly 18% in the past 10 trading days as steel mills in China, the world's biggest iron ore buyer, replenished inventories after prices fell more than 30% in October. But some physical traders have been holding back cargoes, hoping to sell later when prices turn even higher.
An iron ore trader in Singapore said that "Traders are buying aggressively, but whatever they're buying they're just keeping it with an intention to sell later at a higher price. Everybody's lost a lot of money when prices dropped sharply so now they feel the market will continue to turn up and are offering at levels higher than where the market is."
Chinese consultancy Umetal said that offer prices for Australian 63 grade Newman iron ore fines rose a dollar to USD 143 to USD 145 a tonne, including freight and Indian 63.5/63 grade fines increased USD 3 to USD 142 to USD 145.
It said that restocking by smaller Chinese steel mills had boosted their average iron ore inventory to 26 days of use now from 21 days at the end of October, Macquarie said in a note. That is still below the 28 to 33 day inventory range from March to September.
(Sourced from Reuters)
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