Quotes from Unicredit:
- Iron ore supply and demand fundamentals indicate that the all important Chinese market is relatively well-balanced. Major physical spot benchmarks have been finding support around $68-69/tonne, CFR Qingdao, over the past three weeks.
- We believe that lower seaborne and domestic supplies, coupled with depleting port stocks, could provide some upside risk to prices in the short-term.
- That said, deteriorating finished steel prices will remain a heavy burden on steel makers’ raw materials costs.
- Looking further forward, we do not anticipate a robust price recovery in the iron ore market given that supply is expected to remain relatively high, while iron ore consumption growth wanes in tandem with output.
The material has been provided by InstaForex Company – www.instaforex.com