Price of iron ore sales to China reached $ 110 price, price increase iron ore than twice the price of iron ore in April $ 58. Price increase iron ore import demand due to rising iron ore to China. The development of industry and construction sector in China is the cause of the increased demand of iron ore.

Main factors of high iron ore demand in China is the development of steel industry in China. In the year 2009, China’s steel production is very unusual. This condition is worrying steelworks company in another country, because it will happen over the production of steel products resulted in a decrease in prices of steel products. On the other hand, manufacturers of iron ore about the desire to control the sale price of iron ore.

Following the development of demand and price of iron ore sales to China.

Indian ore of 63/63.5 percent iron content for future delivery was quoted at $110 a tonne, up 10 percent on the previous week, while some ores for immediate delivery were bid at more than 900 yuan ($131.8) a tonne, industry consultancy Mysteel said. “The feeling at the moment is that there is no stoppage,” said a large east-India miner and exporter. “At whatever rate a deal is getting closed, sellers are asking for more for the next one.”

The east India miner said he concluded a deal at $108.5 per tonne C&F on Wednesday for ores with 63.5 percent iron content, but on Thursday, he was prepared to ask for “$110, maybe $112 or $114.”

Trade sources in China confirmed the prices but said that sentiment was growing cautious, with fewer deals on Thursday because of the speed of the price increase.

steel price hikes

Chinese steelmakers have been pushing up prices of their products on strong demand from the construction sector as the economy recovers and China’s infrastructure focused stimulus package takes effect.

Wuhan Iron and Steel Co (600005.SS) plans to raise September prices for its major steel products by 700 to 1,600 yuan ($102-$234) per tonne versus August tags, the official Shanghai Securities News reported on Thursday, citing trade sources.

For a factbox on China’s steel prices in August and September, click on.

However, trade sources said Baosteel (600019.SS), China’s largest steel mill, whose prices as a benchmark for the domestic market, was reluctant to match the price increase in its September offering. Xu Lejiang, chairman of Baosteel, also warned last week during CISA’s biannual meeting that steel demand could fall sharply when major public infrastructure projects in China enter their final stages.

Another factor that has been supporting the market but may soon be ending is slower exports from India due to the monsoon.

Some Indian exporters said supplies were tight with some eastern ports such as Haldia and Paradip functioning slowly owing to the monsoon rains, and west ports not expected to start iron ore fines trading until the end of this month.

“Because of the congestion at Haldia due to a strike and the waiting period for vessels, no new cargo is available there,” said Raja Dhupar, vice president of Yazdani International, a trading firm. “At Paradip, the waiting period is still 15 days.”

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