Iron ore market exhibited distinct signs of revival. Clear sign of finished prices improving during the week buying interest improved. Steel prices improving by 1% during the week forebodings were affirmative.

Even though no transactions at improved levels have been reported there was avid buyer’s interest.

Vale SSFT 63.49% tendering at USD 123 per tonne and Australian PB fines traded on a platform at USD 119 was slightly better from before, but enough to see some of the indices in positive territory.

Aspersions being cast on the sustainability of improvement in finished market iron ore turn-around remains under cloud. July PMI dropped by 0.1 % from June to 50.1 is a dampener when the industry was expectant of an improvement with state support for credit easing.
Finished market took the PMI figures with a pinch of pessimism reflective in mixed price movements today keeping the price index unchanged.

Stock pile still at 98.52 million tonnes at major port buying is unlikely to pick up in a major way. It is also learnt that after the battering in July many mills have opted for maintenance shut downs to prune production for better market alignment with demand.

In view of the above August will see minor blips however sustainable growth is expected in early September when the finished market is likely to surge.

Source - Steel Prices India

(www.steelguru.com)