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Thursday, December 29, 2011

Ore sales to China poised to rise - Report

Thursday, 29 Dec 2011

According to researcher, iron ore prices could rise to USD 150 a tonne by March on expectations China central bank will ease credit conditions after the Chinese New Year.

Mr Xu Guangjian Beijing-based analyst said the steelmaking raw material may trade between USD 130 and USD 160 a tonne next year.

He said that "Ore prices may rise moderately after the holidays. Still, there are no signs steel demand will have a substantial recovery in other sectors such as automobiles and home appliances."

Mr Xu said iron ore may remain below USD 140 before the Chinese New Year as the country's steelmakers the world biggest consumers limit purchases.

The week-long Chinese new year holidays start on January 23. Workers usually return to work after the Lantern Festival, the 15th day of the New Year.

Passenger car sales in China rose 0.3 per cent in the past month, the slowest pace in six months, according to the China Association of Automobile Manufacturers.

According to Umetal China construction industry accounts for about 53% of the nation steel demand, while cars make up 7%.

Crude-steel output in China, the world's biggest producer, fell to 49.9 million tonnes in November, the lowest level in 14 months as a slower economy eroded demand and cut prices.

(Sourced from The Australian)

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