Demand is eating all iron ore stoks......
May 26 Spot iron ore prices rose to
their highest in more than a week above $61 a tonne as stocks of
the raw material at Chinese ports dropped to their lowest level
since December 2013, pointing to firm demand as mills rebuild
Stocks of imported iron ore at major Chinese ports fell for
a fifth straight week to 86.70 million tonnes last week,
according to data monitored by consultancy SteelHome. The
inventory has fallen 15 percent this year.
Chinese iron ore futures also notched up more gains on
Tuesday, with the most active contract rising by its upside
limit of 4 percent at one stage, suggesting the rally in spot
prices could stretch further.
"There's a shortage of cargo at Chinese ports now. It seems
foreign miners have slowed down their production and exports as
well," said an iron ore trader in Singapore.
Iron ore for immediate delivery to China's Tianjin port
.IO62-CNI=SI climbed 2 percent to $61.10 a tonne on Monday,
the highest since May 14, according to The Steel Index (TSI).
That followed a 4 percent spike on Friday.
"The availability of some spot cargoes is not matching
demand currently and a lot of mills are running low on
inventory," said a Shanghai-based iron ore trader. We could expect drop out to 84 million lowest since 2013.
The SteelHome China Steel Price Index collects inventory data on a weekly basis from 44 ports in China (FXI). For the week ending May 8, iron ore port inventories moved down significantly. They were at 92.15 million tons. This is the lowest level since January 2014. The inventories for the week before were 96.85 million tons.
Investors bet on China port stocks remaining toght
* Increased supplies since end May likely to cap gains
* Faltering economy still weighs on steel
SHANGHAI, May 21 Chinese iron ore futures is on
track to post the biggest daily gain in more than three weeks as
investors bet on persistent tightness at port inventories
The most-traded iron ore futures on the Dalian Commodity
Exchange jumped 2.7 percent to 425 yuan($68.53) a
tonne by midday, the highest intraday gain since April 27.
Some investors who bet on a price slump have closed their
short positions after prices hit a two-week low on Wednesday,
leading to a technical rebound for the contract, analysts said.
"The bearish sentiment has faded since yesterday afternoon,
though shipment will be increasing since late May, at least for
now, prices for port stocks remain firm given the limited
availability," said Xia Junyan, an analyst with Everbright
Futures in Shanghai.