Himfr.com Reports Spot iron ore prices surged to new highs

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By the steel mills back to the market after the Lunar New Year holiday purchases to supplement the inventory impact of pre-holiday drop in iron ore spot prices once again hit an 18-month high, which makes continuing a long-term iron ore price negotiations for the new year of steel Plant deep passive again.

Last Friday, the Indian grade 63.5% in the fine ore to China's bid to 140-142 U.S. dollars tons, the highest since 2009, compared with Rio Tinto in 2009 to finalize a long association with Japan and South Korea starting price is also higher than mine more than doubled, compared with prices before the Spring Festival is also more than about 10 U.S. dollars ton.

According to the Singapore Exchange settled swap contracts, Australia's benchmark iron ore (iron content 62%) prices have also surged to 133.1 U.S. dollars per ton.

Since February, the spot price of iron ore has gone from down to uplift trend. The domestic steel spot trading platform - West, this new route monitoring data show that years ago, the holiday of factors, the market as a whole to maintain consolidation state, years later, the domestic steel production to resume, together with consumption during the holiday season, some steel mills began to purchase, purchase price a slight increase.

As of February 25, the Liaoning region 65% Tie Jingfen price of 850 yuan ton, the price rose 30 to 50 yuan ton, Shanxi and Tangshan and other places prices are also slightly raised.

In this regard, Nishimoto Shinkansen panellists peace analysis by the spring and the weather, since February, most of the basic steel mill to stop sourcing, after a month of consumption, the steel mills appear to reduce inventories, opening after the Spring Festival, some steel mills began purchasing the stock market, and have raised the purchase price. But in the current steel market has not yet started, the price trend is still unclear circumstances, coupled with the recent tightening of macroeconomic policy, the trend of more and more obvious, steel market can hardly be optimistic about the market outlook, so steel mills purchase only short-term behavior of the complement of libraries.
The continuous rise in spot prices is obviously not conducive to the current ongoing long-term iron ore price negotiations for the new year.

Currently, CVRD, Rio Tinto and BHP Billiton is working with three major mining enterprises in China, Japan and European steel producers to negotiate iron ore contract year. With BHP Billiton, led by mining companies who have said they want to make the annual contract price closer to the spot market, the implementation of more flexible pricing form, iron and steel enterprises have expressed opposition.

For the upcoming March, the West of the latest analysis of the Shinkansen report said, the domestic availability of resources will ease the tension, as a ~ 2 months, subject to weather and snow affect the Chinese New Year holiday, the local small and medium mining the basic cut-off, the market availability of resources volume decreased significantly. Into March, with the weather improved, mine production will resume gradually. This might help reduce dependence on imported iron ore.

China Steel Association executive vice president Luo Bingsheng has revealed that 62% of China's iron ore imports to meet demand through from the source to see imported iron ore, Australia, Brazil, China imported ore is still the main source countries. However, Nishimoto Shinkansen report pointed out that the current iron ore imports from India significantly reduced the proportion, and from South Africa, Ukraine, Canada, although the absolute volume of imports of iron ore is still small, but the proportion of the total share is significant increase, it also shows China's determination to broaden the channels for iron ore imports.

In domestic demand, due to their excess steel production capacity, coupled with the gradual tightening of monetary policy this year, the contradiction between an oversupply of steel market will gradually appear. "Although the market for the new fiscal year iron ore price increases expected an agreement, but already at the current high import prices has been a clear lack of a substantial rise in power. Therefore, the March, the iron ore price shocks trend or will run. "Peace said.

Article Source: http://depositarticles.com/

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