Traders said Chinese market demand for Indian iron ore had been reduced over the past three weeks.
At present, 63.5% Indian fine ore price in China’s major ports was 66-67 dollars per dry ton (CFR), almost the same as that of the two beginning weeks in March. However, because domestic buyers held watch-and-see attitudes towards the market, there was little transaction.

Now prices had decreased almost 20pc, when compared to 85 dollars per dry ton CFR of last month.

Generally speaking, if the price was stable, volume of transaction would gradually increase, but this month the situation was not the case, and a major north iron ore traders said on Mar.20 “Some buyers thought that the Indian ore prices had touched bottom last week, so they ordered some ore, but this week someone would not think so, and they held watch-and-see attitudes to the market.”

Because of previous rumors that Chinese steel mills would be further reduced, traders thought there was no transaction in the following months. Another Shanghai trader said, “I was worried that the situation of slumping market would continue for quite a long time.”

Dalian Port import 1.37 million tonnes iron ore in February

It is reported that Liaoning-based Dalian port has imported 1.37 million tonnes of iron ore up by 26.2%MoM or 39.8%YoY.

As learned, the main drivers behind the large growth on imported iron ore are as follows.

1. The national macro control policy has speeded up the operation of medium and small sized steel mills, which is considered as the major element.

2. The demand recovery of iron ore transportation resulted from the inventory consumption from last November.

3. The traders rush to purchase the ores at present in case the spot price hikes after the iron ore talks on April.

In sum, the imports of iron ore this year is going to be further observed in the days to come.

sourced : Mysteel.net

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