Iron ore price improved by single notch on Monday taking cue from interest by mills in buying as improved finished prices gaining by 10% over the last 6 week has prompted mills to improve production. October daily crude steel production has already improved by 4% at 1.91 million tonnes per day from 1.84 million tonne per day in end September.
Seasonal demand during the month when some construction activity takes place has buoyed Chinese steel prices, although gains have been limited with overall end-user demand still largely tepid.
The most active rebar contract for May delivery on the Shanghai Futures Exchange rose CNY 41 per tonne, or 1.1%, to CNY 3692 per tonne (USD 590) per tonne by the midday break.
There were several trades on the physical front, but no real surprises, which reflected in the indices being mixed on the day. Chinese mills were not in a hyper active mode but firm steel prices are helping it hold on and possibly improve as the week moves on.
Iron ore fines
|Fe 63/62 %||1.0%|
|Fe 62 / 61%||1.0%|
|Fe 61 / 60 %||1.1%|
|Fe 60/59 %||1.1%|
|Fe 59 / 58 %||1.1%|
|Fe 58 / 57%||1.2%|
|Fe 57/56 %||1.2%|
|Fe 55/54 %||1.4%|
|Fe 54/ 53 %||1.4%|
|Fe 53/52 %||1.5%|
|Fe 52/51 %||1.6%|
Change on 22nd October as compared to 16th October 2012
Source - Strategic Research Institute