It is reported that imported iron ore market maintained steady these days. Market gradually returns to peace after continuous rebound. Enquiries were moderate, yet trades turned thin. Steel market kept steady last weekend. However, steel mills still bore tight liquidity pressure. Most mills have replenished iron ore stocks in previous period and therefore, the trades in iron ore seaborne market were unsound last week with wait and see atmosphere showing up. These signs show that this round of rebound may come to a close.
In seaborne market, high grade iron ores became sufficient last week, and miners' quotations edged up slightly. On July 25, 63.5/63% Indian fines prevailed at USD 181 per tonne to USD 183 per tonne. Low grade shipments were trapped in logistics problems due to Indian monsoon season. The tight supply drove up quotations for these shipments. It was learnt that 53/52% Indian fines quoted at USD 101 per tonne to USD 103 per tonne.
Some small and medium steel mills mainly purchased in physical market. Low grade iron ores were preferred given the high raw material costs. In spot market, Indian resources remained in tight supply while Australian iron ores were sufficient and traders quotations kept firm in general. Enquiries for low grade iron ores got more numerous and quotations also edged up due to tight liquidity at steel mills. Till July 26, spot price for Fe 63.5% Indian ore fines is quoted at CNY 1,320 per tonne to CNY 1,340 per tonne, 63.5% Brazilian coarse fines is posted at CNY 1,260 per tonne to CNY 1,290 per tonne.
Steel prices kept relatively stable in general today after small gains in previous sessions. The recent deadly railway tragedy damped investors' sentiment as rebar futures plunged in recent days. Given the high cost are supporting the prices and market quotations remain firm, traders are reluctant to lower the prices. Transaction volumes were reported average recently. We expect the prices to see consolidation in near term.