China’s imported iron ore market continued to see narrow fluctuation. Traders were eager to sell and held quotations firm; some Brazilian resources in tight supply saw a slight price hike of RMB3-5/tonne. Steel mills showed no active procurement. It was learnt steel mills were not eager to stock up unless prices acceptable; steel mills purchased some low alumina resources and also bought Brazilian fines for the alternative of Carajas fines due to high prices. Traders tended to play waiting games especially for those who possessed high stocks of PB fines.
Transactions were not active, with Carajas fines traded at RMB690/tonne in Shandong and PB lumps at RMB640/tonne. Low alumina iron ore resources are likely to see price hike owing to tight supply, while medium and low grade iron ore fines are expected to vibrate in narrow range without upside momentum.