Saturday, 18 Feb 2012
Bloomberg reported that iron ore dropped for a seventh day, the longest losing run in more than three months, as the biggest consumer China may slow buying because of increased stockpiles.
Data from The Steel Index showed that ore with 62% iron content at the Chinese port of Tianjin fell 1.6% to USD 137.40 per metric tonne on February 17th 2012. Prices last had a losing run that long in the period ended Oct. 28.
Mr Daniel Hynes director of commodity research at Citigroup Inc in Sydney said that “They’re certainly not as aggressive as we’ve come to expect at this time of year.”
He said that a price rally late last year may have been down to re stocking.
According to data from Mysteel.com, inventories at 30 Chinese ports totaled 100.21 million tonnes last week, about 32% more than a year earlier. Steel demand in China normally increases after the weeklong Lunar New Year holidays as construction resumes. The break ended on January 29 this year.
(Sourced from Bloomberg)
Showing posts with label The Steel Index. Show all posts
Showing posts with label The Steel Index. Show all posts
Saturday, February 18, 2012
Friday, November 4, 2011
Iron ore swaps volume hit record in October - Report
Friday, 04 Nov 2011
According to Steel Index, the volume of forward iron ore swaps cleared globally soared to an all-time high above 9 million tonnes in October, as prices collapsed on slower demand from top consumer China.
Steel Index said that the contracts were valued at around USD 1.4 billion and trumped a previous record in August when volume reached more than 6.6 million tonnes worth over USD 1 billion.
Steel Index said that the majority of the contracts last month were cleared on the Singapore Exchange where volume hit 15,443 lots, or 7.7 million tonnes.
Spot iron ore prices .IO62-CNI=SI lost nearly 31% in October, their biggest monthly loss ever, as weaker steel demand in China slashed appetite for the raw material.
But prices began recovering on Monday as a more than 35% slump since September drew buyers back into the market, although traders said worries that steel demand in China may remain tepid for the rest of 2011 could limit any rebound.
Mr Oscar Tarneberg senior analyst for Steel Index in Asia said that "The surge in iron ore swaps trading volumes in October reflects the increased price risk in the physical market.”
He added that "With prices falling so precipitously, swaps offer physical participants a tool to hedge against the impact of sharp price movements and uncertainty."
(Sourced from Reuters)
According to Steel Index, the volume of forward iron ore swaps cleared globally soared to an all-time high above 9 million tonnes in October, as prices collapsed on slower demand from top consumer China.
Steel Index said that the contracts were valued at around USD 1.4 billion and trumped a previous record in August when volume reached more than 6.6 million tonnes worth over USD 1 billion.
Steel Index said that the majority of the contracts last month were cleared on the Singapore Exchange where volume hit 15,443 lots, or 7.7 million tonnes.
Spot iron ore prices .IO62-CNI=SI lost nearly 31% in October, their biggest monthly loss ever, as weaker steel demand in China slashed appetite for the raw material.
But prices began recovering on Monday as a more than 35% slump since September drew buyers back into the market, although traders said worries that steel demand in China may remain tepid for the rest of 2011 could limit any rebound.
Mr Oscar Tarneberg senior analyst for Steel Index in Asia said that "The surge in iron ore swaps trading volumes in October reflects the increased price risk in the physical market.”
He added that "With prices falling so precipitously, swaps offer physical participants a tool to hedge against the impact of sharp price movements and uncertainty."
(Sourced from Reuters)
Friday, August 5, 2011
Iron ore swaps rise to record 4 million tonne in July - TSI
Friday, 05 Aug 2011
Reference price provider the Steel Index said that the volume of iron ore swaps cleared globally rose to an all time high of more than 4 million tonnes in July, reflecting growing interest in the steelmaking material's hedging tool.
The bulk of the swaps, which totaled 4.09 million tonnes valued at more than USD 700 million, were cleared by the Singapore Exchange.
The Singapore Exchange said separately that volumes reached a record of 7,845 lots, equivalent to 3.92 million tonnes, beating the previous record of 6,905 lots, or 3.45 million tonnes, reached in May.
Other swap contracts are cleared by LCH. Clearnet in London, the CME Group, Norway's NOS Clearing and the Indian Commodity Exchange. All the bourses use TSI as the reference price index.
Iron ore swaps, launched in May 2008, are cash-settled contracts that allow steelmakers and traders to hedge their cost after the industry abandoned a system of pricing contracts once a year in favor of a more flexible quarterly scheme.
(sourced from Reuters)
Reference price provider the Steel Index said that the volume of iron ore swaps cleared globally rose to an all time high of more than 4 million tonnes in July, reflecting growing interest in the steelmaking material's hedging tool.
The bulk of the swaps, which totaled 4.09 million tonnes valued at more than USD 700 million, were cleared by the Singapore Exchange.
The Singapore Exchange said separately that volumes reached a record of 7,845 lots, equivalent to 3.92 million tonnes, beating the previous record of 6,905 lots, or 3.45 million tonnes, reached in May.
Other swap contracts are cleared by LCH. Clearnet in London, the CME Group, Norway's NOS Clearing and the Indian Commodity Exchange. All the bourses use TSI as the reference price index.
Iron ore swaps, launched in May 2008, are cash-settled contracts that allow steelmakers and traders to hedge their cost after the industry abandoned a system of pricing contracts once a year in favor of a more flexible quarterly scheme.
(sourced from Reuters)
Wednesday, March 9, 2011
Iron Ore-Key index falls for 14th day, Shanghai rebar steady
Wed Mar 9, 2011 5:51am GMT
* Iron ore indexes at two-month lows on lean China demand
* India's top port iron ore exports down 4.2 pct in Feb
SINGAPORE, March 9 (Reuters) - Chinese steel futures were steady on Wednesday after iron ore indexes fell to two-month lows as mills remained wary of buying more raw material until they see a pickup in demand for their products.
Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $176 a tonne on Tuesday, extending its losing streak to a 14th consecutive day.
The index, widely used by global miners in setting quarterly contract prices, has lost 8.8 percent since hitting a record high of $193 in mid-February as demand from top iron ore buyer China thinned.
Two other key indexes also extended their declines. The Steel Index's 62 percent gauge .IO62-CNI=SI slipped $1.20 to $171.60 and Metal Bulletin's index .IO62-CNO=MB dropped $1.72 to $173.25.
All three indexes are at their lowest levels since early January.
"As steel prices fell in China, iron ore prices are facing a lot of headwinds," said Henry Liu, regional head of Commodities Research at Mirae Assets.
Of the 80 million tonnes of iron ore stocks at Chinese ports, nearly 35 million to 40 million tonnes belong to traders, who were betting on a recovery in steel demand after the Lunar New Year holiday last month, said Liu.
"But we haven't seen any obvious pickup in steel demand, and to the disappointment of traders, steel prices have declined since the end of Lunar Near Year."
Shanghai steel rebar futures rose 11 yuan to 4,784 yuan a tonne at 0545 GMT, slightly above the previous session's nadir of 4,755, its weakest since Dec. 1.
Iron ore prices have fallen steadily for around three weeks as Chinese steel producers, worried about the high cost of ore and falling steel prices trimmed purchases of overseas feedstock.
Chinese port stocks dipped marginally last week, but at more than 80 million tonnes are still near record levels, and the tighter credit market in China may mean owners of some of that ore will want to sell in light of higher financing costs.
China's daily average crude steel output over Feb. 21-28 reached 1.912 million tonnes, up 5.5 percent compared with the previous 10 days, data from the China Iron and Steel Association showed on Tuesday.
On an annualised basis, China is set to produce 665 million tonnes, according to Reuters calculations -- in line with an output forecast of 660 million tonnes made by the Ministry of Industry and Information Technology last month.
Iron ore exports from India's largest port of Mormugao fell 4.2 percent in February from a year earlier to 4.5 million tonnes, as higher taxes and an export ban from a southern state looked set to weigh further on shipments.
* Iron ore indexes at two-month lows on lean China demand
* India's top port iron ore exports down 4.2 pct in Feb
SINGAPORE, March 9 (Reuters) - Chinese steel futures were steady on Wednesday after iron ore indexes fell to two-month lows as mills remained wary of buying more raw material until they see a pickup in demand for their products.
Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $176 a tonne on Tuesday, extending its losing streak to a 14th consecutive day.
The index, widely used by global miners in setting quarterly contract prices, has lost 8.8 percent since hitting a record high of $193 in mid-February as demand from top iron ore buyer China thinned.
Two other key indexes also extended their declines. The Steel Index's 62 percent gauge .IO62-CNI=SI slipped $1.20 to $171.60 and Metal Bulletin's index .IO62-CNO=MB dropped $1.72 to $173.25.
All three indexes are at their lowest levels since early January.
"As steel prices fell in China, iron ore prices are facing a lot of headwinds," said Henry Liu, regional head of Commodities Research at Mirae Assets.
Of the 80 million tonnes of iron ore stocks at Chinese ports, nearly 35 million to 40 million tonnes belong to traders, who were betting on a recovery in steel demand after the Lunar New Year holiday last month, said Liu.
"But we haven't seen any obvious pickup in steel demand, and to the disappointment of traders, steel prices have declined since the end of Lunar Near Year."
Shanghai steel rebar futures rose 11 yuan to 4,784 yuan a tonne at 0545 GMT, slightly above the previous session's nadir of 4,755, its weakest since Dec. 1.
Iron ore prices have fallen steadily for around three weeks as Chinese steel producers, worried about the high cost of ore and falling steel prices trimmed purchases of overseas feedstock.
Chinese port stocks dipped marginally last week, but at more than 80 million tonnes are still near record levels, and the tighter credit market in China may mean owners of some of that ore will want to sell in light of higher financing costs.
China's daily average crude steel output over Feb. 21-28 reached 1.912 million tonnes, up 5.5 percent compared with the previous 10 days, data from the China Iron and Steel Association showed on Tuesday.
On an annualised basis, China is set to produce 665 million tonnes, according to Reuters calculations -- in line with an output forecast of 660 million tonnes made by the Ministry of Industry and Information Technology last month.
Iron ore exports from India's largest port of Mormugao fell 4.2 percent in February from a year earlier to 4.5 million tonnes, as higher taxes and an export ban from a southern state looked set to weigh further on shipments.
A Mormugao port official said exports to date from April 2010 were 36.7 million tonnes, versus 36.2 million tonnes from a year ago, which included iron ore from neighbouring Karnataka state before it imposed an exports ban. (Reporting by Nick Trevethan; Additional reporting by Rujun Shen; Editing by Manolo Serapio Jr., sourced :Thomson Reuters)
Tags :commodities Research, Mirae Assets Securities, Mormugao port, steel prices, raw material, Argentina's steelmakers, Indian iron ore traders exporters
Sunday, February 13, 2011
Iron Ore-Shanghai rebar, iron ore prices at record
SINGAPORE,Feb11,2011,Reuters
Shanghai steel futures rose to a record for a fifth day in a row on Friday as index-based spot iron ore prices bolted to all-time highs on tight supplies and strong demand from top buyer China.
Chinese steelmakers are boosting production in anticipation of a pickup in demand when construction activities restart in spring after halting in winter.
"People are pushing up prices because the cost of iron ore and coal are increasing and spring is approaching which means the resumption of construction activities in China," said an iron ore trader in China's eastern Shandong province.
The most active reinforcing bar, or rebar, contract for October delivery on the Shanghai Futures Exchange was up 0.5 percent at 5,213 yuan per tonne by the midday break, after peaking at 5,230 yuan earlier.
Most Chinese rebar exporters have stopped selling overseas and have turned to the domestic market given soaring prices at home, traders said.
Spot rebar is being sold at 4,800 yuan per tonne in northern China and at almost 5,000 yuan in the south, the Shandong trader said.
"Most steel mills are producing in full capacity which means there could be a big surplus of these steel products if demand is weak," he added.
RECORD IRON ORE
The surge in Shanghai rebar futures followed iron ore price indexes reaching record levels on Thursday.
Global miners Vale and Rio Tinto use the indexes in setting quarterly iron ore contracts, which is likely to hit a record in April-June given the recent surge in spot prices.
Vale and Rio price quarterly rates using the average index-based price for the past three months one month before the start of the relevant quarter.
Platts' 62 percent iron ore index IODBZ00-PLT has averaged $176.5 a tonne, cost and freight delivered to China, from Dec. 1 until this week, up more than 18 percent from the September-November average.
Platts' index rose $1.50 to $190.25 a tonne on Thursday, and with the bull trend intact, it could test $219 over the next three months, said Reuters market analyst Wang Tao.
The Steel Index 62 percent iron ore benchmark .IO62-CNI=SI climbed $1.60 to $188, and Metal Bulletin's 62 percent gauge .IO62-CNO=MB jumped $1.79 to $185.90.
BHP, Rio Tinto, Vale as well as Australian iron ore producer Fortescue Metals Group "are shipping as much as they can" while cargoes from No. 3 supplier India are crimped by an export ban in Karnataka and transport restrictions in Orissa, Commonwealth Bank of Australia said in a note.
India's Supreme Court is likely to rule on the Karnataka ban this month, which if lifted, could dampen the rally that has pushed up price indexes by 11 percent so far this year, after gaining more than 40 percent in 2010.
The Karnataka ban has been in place since last July, shrinking India's iron ore exports for a sixth straight month in December.
Indian ore with 63.5 percent iron content was being offered in China at $190-$192 a tonne, including freight, up from $188-$190 earlier this week, said Chinese consultancy Umetal.
That grade could hit $200 next week, said a Shanghai-based trader who saw offers of as high as $197 per tonne.
"But we may see some correction in March. Some mills are not buying because credit is getting tighter and the government is bent on controlling price increases," the Shanghai trader said.
China raised interest rates for the second time in six weeks on Tuesday to tame stubbornly high inflation that threatens to unsettle global markets.
Shanghai steel futures rose to a record for a fifth day in a row on Friday as index-based spot iron ore prices bolted to all-time highs on tight supplies and strong demand from top buyer China.
Chinese steelmakers are boosting production in anticipation of a pickup in demand when construction activities restart in spring after halting in winter.
"People are pushing up prices because the cost of iron ore and coal are increasing and spring is approaching which means the resumption of construction activities in China," said an iron ore trader in China's eastern Shandong province.
The most active reinforcing bar, or rebar, contract for October delivery on the Shanghai Futures Exchange was up 0.5 percent at 5,213 yuan per tonne by the midday break, after peaking at 5,230 yuan earlier.
Most Chinese rebar exporters have stopped selling overseas and have turned to the domestic market given soaring prices at home, traders said.
Spot rebar is being sold at 4,800 yuan per tonne in northern China and at almost 5,000 yuan in the south, the Shandong trader said.
"Most steel mills are producing in full capacity which means there could be a big surplus of these steel products if demand is weak," he added.
RECORD IRON ORE
The surge in Shanghai rebar futures followed iron ore price indexes reaching record levels on Thursday.
Global miners Vale and Rio Tinto use the indexes in setting quarterly iron ore contracts, which is likely to hit a record in April-June given the recent surge in spot prices.
Vale and Rio price quarterly rates using the average index-based price for the past three months one month before the start of the relevant quarter.
Platts' 62 percent iron ore index IODBZ00-PLT has averaged $176.5 a tonne, cost and freight delivered to China, from Dec. 1 until this week, up more than 18 percent from the September-November average.
Platts' index rose $1.50 to $190.25 a tonne on Thursday, and with the bull trend intact, it could test $219 over the next three months, said Reuters market analyst Wang Tao.
The Steel Index 62 percent iron ore benchmark .IO62-CNI=SI climbed $1.60 to $188, and Metal Bulletin's 62 percent gauge .IO62-CNO=MB jumped $1.79 to $185.90.
BHP, Rio Tinto, Vale as well as Australian iron ore producer Fortescue Metals Group "are shipping as much as they can" while cargoes from No. 3 supplier India are crimped by an export ban in Karnataka and transport restrictions in Orissa, Commonwealth Bank of Australia said in a note.
India's Supreme Court is likely to rule on the Karnataka ban this month, which if lifted, could dampen the rally that has pushed up price indexes by 11 percent so far this year, after gaining more than 40 percent in 2010.
The Karnataka ban has been in place since last July, shrinking India's iron ore exports for a sixth straight month in December.
Indian ore with 63.5 percent iron content was being offered in China at $190-$192 a tonne, including freight, up from $188-$190 earlier this week, said Chinese consultancy Umetal.
That grade could hit $200 next week, said a Shanghai-based trader who saw offers of as high as $197 per tonne.
"But we may see some correction in March. Some mills are not buying because credit is getting tighter and the government is bent on controlling price increases," the Shanghai trader said.
China raised interest rates for the second time in six weeks on Tuesday to tame stubbornly high inflation that threatens to unsettle global markets.
Wednesday, February 2, 2011
Steel Index adds two new iron ore reference prices
SINGAPORE, Feb1, 2011
(Reuters) - Data provider Steel Index said on Wednesday it has launched two more reference prices for iron ore that reflect specific grades of the raw material to aid long-term contract pricing.
The new reference prices include one for iron ore fines with 62 percent iron content and 2 percent alumina content while the other is for 63.5/63 percent grade with 3.5 percent alumina, Steel Index said in a statement. Both are priced with freight delivered to Qingdao port in China.
"The addition of the new reference prices will make it easier for parties using long-term supply contracts to index-link to a relevant spot series," said Rory MacDonald, head of iron ore operations at Steel Index.
MacDonald said the 2 percent alumina content grade is in line with ores mined in Western Australia's Pilbara belt and in southern Brazil which are mostly sold via quarterly contracts. The 63.5/63 grade references ore mined in India, he added.
This brings Steel Index's iron ore reference prices to four, including the existing 62 percent and 58 percent benchmarks, both with 3.5 percent alumina priced with freight for delivery to China's Tianjin port.
Global miners like Vale and Rio Tinto have been using iron ore price indexes as basis in determining rates for quarterly contracts with buyers of the steelmaking ingredient following the collapse of decades-old annual pricing arrangement in April.
Tight supplies have lifted index-based iron ore prices to record highs last month, suggesting second-quarter contract rates are likely to rise again after an estimated 7-8 percent increase in the first quarter.(Reporting by Manolo Serapio Jr.; Editing by Ed Lane, sourced:reuters)
India iron ore futures rise a tad; volumes moderate
Wed Feb 2, 2011 8:37 amEST
* Volumes moderate even as trading enters fourth day
* Brokers says getting enquiries from exporters for hedging
MUMBAI Feb 2 (Reuters) The world's first iron ore futures in India rose a tad on Wednesday, tracing gains in the overseas spot market, which hovered near its record high, traders and analysts said.
At 5:00 p.m. on the Indian Commodity Exchange (ICEX), iron ore of 62 percent fines for March delivery was trading 0.85 percent higher at 8,014 rupees per tonne, including freight cost for delivery to northern China.
While on the Multi Commodity Exchange (MCX), the country's largest by turnover, 62 percent fines for February delivery was trading 0.30 percent higher at 7,380 rupees per tonne, free on board.
ICEX, which is part-owned by state-run MMTC Ltd (MMTC.BO), the biggest Indian trader of iron ore, recorded volumes of 20,800 tonnes, down 15 percent from a day ago. MCX volumes were at 1,500 tonnes.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $187.25 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was steady at $185.60.
The trading entered into its fourth day, and have been witnessing moderate volumes since its launch, and analysts said volumes would remain thin until exporters get used to the contract.
"We have been getting enquiries from iron ore exporters. We see potential in these contracts going forward," said Aurobinda Prasad, head of research, Karvy Comtrade.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
India is the world's third-biggest iron ore exporter after Australia and Brazil, but shipments have been hit by an export ban in its southern Karnataka state.
India normally exports around 100 million tonnes of iron ore annually of which around a quarter comes from Karnataka. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil, sourced:Reuters)
* Volumes moderate even as trading enters fourth day
* Brokers says getting enquiries from exporters for hedging
MUMBAI Feb 2 (Reuters) The world's first iron ore futures in India rose a tad on Wednesday, tracing gains in the overseas spot market, which hovered near its record high, traders and analysts said.
At 5:00 p.m. on the Indian Commodity Exchange (ICEX), iron ore of 62 percent fines for March delivery was trading 0.85 percent higher at 8,014 rupees per tonne, including freight cost for delivery to northern China.
While on the Multi Commodity Exchange (MCX), the country's largest by turnover, 62 percent fines for February delivery was trading 0.30 percent higher at 7,380 rupees per tonne, free on board.
ICEX, which is part-owned by state-run MMTC Ltd (MMTC.BO), the biggest Indian trader of iron ore, recorded volumes of 20,800 tonnes, down 15 percent from a day ago. MCX volumes were at 1,500 tonnes.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $187.25 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was steady at $185.60.
The trading entered into its fourth day, and have been witnessing moderate volumes since its launch, and analysts said volumes would remain thin until exporters get used to the contract.
"We have been getting enquiries from iron ore exporters. We see potential in these contracts going forward," said Aurobinda Prasad, head of research, Karvy Comtrade.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
India is the world's third-biggest iron ore exporter after Australia and Brazil, but shipments have been hit by an export ban in its southern Karnataka state.
India normally exports around 100 million tonnes of iron ore annually of which around a quarter comes from Karnataka. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil, sourced:Reuters)
Wednesday, January 26, 2011
Iron Ore-Key indexes climb to high but buying wanes
Wednesday Jan 26, 2011
SHANGHAI Jan 26 (Reuters) -
Offers to sell iron ore to China remained unchanged on Wednesday as steel mills closed buying in the final week before the Lunar New Year holiday, although key indexes hovered near record highs on Tuesday.
China's iron ore market has gradually ground to a halt this week as the Feb.2-8 Lunar New Year holiday approaches, and offers of Indian ore with 63.5 percent iron content selling to China stood little changed at about $190 per tonne.
"Our steel mill customers have already stopped buying the raw materials this week; there is no market at all right now," said an iron ore trader in Shanghai.
Year-end restocking by Chinese steel mills since early January has boosted prices of imported iron ore to near $200 per tonne including freight, a level last seen in February 2008.
The Platts 62 percent iron ore index IODBZ00-PLT stood steady at $186 per tonne on Tuesday, still near the record $186.50 touched last Thursday.
The Steel Index 62 percent benchmark .IO62-CNI=SI rebounded 40 cents to $185.4 per tonne, holding close to last Friday's record $185.70 last Friday.
The Metal Bulletin Iron Ore Index .IO62-CNO=MB bucked the trend again by falling about $1 to $183.48 per tonne on Tuesday after gaining for 12 consecutive sessions. (Reporting by Ruby Lian and Manolo Serapio Jr in SINGAPORE; Editing by Chris Lewis, sourced reuters)
Wednesday, January 19, 2011
Key indexes near record high
19th January 2011
SINGAPORE – Key iron-ore price indexes were on track to hit record highs on Wednesday, aided by strong Chinese buying ahead of the Lunar New Year and persistent worries over tight supply.
Some Chinese steel mills continued to restock the steelmaking material for fear prices would go up further while some traders were adopting a more cautious stance with prices at near record highs, traders said.
The Platts 62% iron-ore index rose 1,4% to $185 a ton, cost and freight delivered to China, on Tuesday.
That is just a dollar away from the $186 posted on Platts on April 20 last year, the highest since the reference price provider began publishing daily iron ore prices in June 2008.
The Steel Index's (TSI) 62% benchmark edged up 60c to $181,40 a ton, also near its record $184,80 reached last April 23.
High-grade Carajas iron ore fines from top producer Vale were offered at above $200 a ton on Tuesday, TSI said in a note.
Rising prices of steelmaking materials like iron ore as well as coking coal, after floods ravaged top producer Australia, kept Shanghai steel rebar futures trading near record highs.
The most active May rebar contract on the Shanghai Futures Exchange touched a high of 4 931 yuan a ton on Wednesday, a tad off the record 4 933 yuan touched on Monday.
The outlook for the global steel sector is stable with the worst behind the industry after the economic downturn, although recovery is still relatively slow and not expected to accelerate, Standard & Poor's lead analyst Andrey Nikolaev said on Tuesday.
Edited by: Reuters
SINGAPORE – Key iron-ore price indexes were on track to hit record highs on Wednesday, aided by strong Chinese buying ahead of the Lunar New Year and persistent worries over tight supply.
Some Chinese steel mills continued to restock the steelmaking material for fear prices would go up further while some traders were adopting a more cautious stance with prices at near record highs, traders said.
The Platts 62% iron-ore index rose 1,4% to $185 a ton, cost and freight delivered to China, on Tuesday.
That is just a dollar away from the $186 posted on Platts on April 20 last year, the highest since the reference price provider began publishing daily iron ore prices in June 2008.
The Steel Index's (TSI) 62% benchmark edged up 60c to $181,40 a ton, also near its record $184,80 reached last April 23.
High-grade Carajas iron ore fines from top producer Vale were offered at above $200 a ton on Tuesday, TSI said in a note.
Rising prices of steelmaking materials like iron ore as well as coking coal, after floods ravaged top producer Australia, kept Shanghai steel rebar futures trading near record highs.
The most active May rebar contract on the Shanghai Futures Exchange touched a high of 4 931 yuan a ton on Wednesday, a tad off the record 4 933 yuan touched on Monday.
The outlook for the global steel sector is stable with the worst behind the industry after the economic downturn, although recovery is still relatively slow and not expected to accelerate, Standard & Poor's lead analyst Andrey Nikolaev said on Tuesday.
Edited by: Reuters
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