Limited Iron Ore Supplies Pushes China's Spot Prices Upwards
CISA reports that "The shortfall of iron ore supplies has prompted a surge in the spot prices of iron ore from India, Brazil and Australia to over $190 per ton.
The latest offer price by Vale for 64 percent iron content fines stood at $195 per ton on CFR basis while Rio Tinto's PB fines (grading 61 percent) were being quoted at $191 per ton.
The state government of Orissa, India, would join Karnataka state to put a cap on the export of local iron ore resources, along with its intention to increase export duties from 5 to 15 percent to a uniform 20 percent.
Traders' expectations of a near-term rebound in the domestic iron ore market were stronger for fears of raw material scarcity caused by rainstorms in Brazil and floods in Australia in recent days. The prices of iron ore may continue to rise after the Chinese Lunar New Year, or the Spring Festival, and perhaps exceed $200 per ton on CFR basis."