Iron ore market is poised for stepping out from hibernation. With the domestic steel price exuding confidence time is ripe for action in the raw material market as well.
Even though import of iron ore has been chugging along in February clocking an unexpected but impressive 65 million tonnes there was utter lack of enthusiasm.
Import levels have stagnated at USD 145-147 per tonne, CNF, Chinese ports for the past 1 month. Perceptible lack of interest in buying despite supply constraints from India had the suppliers soft peddling in 2012. Whereas on one hand mills handicapped by production cuts shied from buying a towering stockpile averaging nearly 100 million tonnes proved to be deterrent.
Since business cycles are dependent on anticipation rather than factum of demand in the nebulous recessionary phase rally in long and flat product prices in China in March have catalysed interest.
Freight index BDI has shown improvement recently indicating demand for vessels by the suppliers.
Onset of spring season has led to expectation of demand from the key sectors viz., construction, infrastructure etc. Government too seems inclined to give the reclusive monetary tightening policy reprieve to catalyze growth in China. Market is agog with expectation of reduction in lending rate by at least 50 basis points to ignite beleaguered housing construction and reality market which has remained at the vanguard of steel consumption and growth.
Physical Market has a firmer tone this week after Fridays lower Chinese inflation figures. Players are hoping for an easing in the credit markets to give construction a boost. This optimism was reflected in an increase in enquiries from potential physical buyers.
Even though Premier Wen Jiabao has struck a moderate note by targeting modest 7.5% economic growth in 2012 the keenness for economic growth cannot be overlooked with an equally emphatic stress on balanced growth and economic revival.
To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com
Source - Steel price China
(www.steelguru.com)
Even though import of iron ore has been chugging along in February clocking an unexpected but impressive 65 million tonnes there was utter lack of enthusiasm.
Import levels have stagnated at USD 145-147 per tonne, CNF, Chinese ports for the past 1 month. Perceptible lack of interest in buying despite supply constraints from India had the suppliers soft peddling in 2012. Whereas on one hand mills handicapped by production cuts shied from buying a towering stockpile averaging nearly 100 million tonnes proved to be deterrent.
Since business cycles are dependent on anticipation rather than factum of demand in the nebulous recessionary phase rally in long and flat product prices in China in March have catalysed interest.
Freight index BDI has shown improvement recently indicating demand for vessels by the suppliers.
Onset of spring season has led to expectation of demand from the key sectors viz., construction, infrastructure etc. Government too seems inclined to give the reclusive monetary tightening policy reprieve to catalyze growth in China. Market is agog with expectation of reduction in lending rate by at least 50 basis points to ignite beleaguered housing construction and reality market which has remained at the vanguard of steel consumption and growth.
Physical Market has a firmer tone this week after Fridays lower Chinese inflation figures. Players are hoping for an easing in the credit markets to give construction a boost. This optimism was reflected in an increase in enquiries from potential physical buyers.
Even though Premier Wen Jiabao has struck a moderate note by targeting modest 7.5% economic growth in 2012 the keenness for economic growth cannot be overlooked with an equally emphatic stress on balanced growth and economic revival.
To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com
Source - Steel price China
(www.steelguru.com)
