Mirroring the finished sentiments iron ore market too witnessed flurry of activity with import offers notching couple of dollars. Despite some deals concluding at higher levels the transaction levels remained unmoved.

Most traded rebar contract for May delivery on the Shanghai Futures Exchange closed up half a percent at CNY 3675 per tonne (USD 590) per tonne.

China's average daily crude steel output rose to 1.932 million tonnes in September from 1.894 million tonnes in August, as a rebound in prices encouraged mills to boost production. Experts believe that steel mills will continue to increase output in October, maybe to between 1.95 million and 2 million tonnes per day creating stepped up buying activity of iron ore.

Rising steel output in China, should expectedly support the iron ore prices in Q4 between USD 110 to USD 120 per tonne.

However the flip side is that unprecedented surge in production being common in a fragmented steel industry in China can lead to repeated deluge leading to plummeting prices.
Objectively steel market is ambivalent at this juncture with clarity dawning after a month when host of political and economic questions get an answer.

www.steelprices-china.com

Source - Strategic Research Institute

(www.steelguru.com)