By Diana Kinch RIO DE JANEIRO -(MarketWatch)- The
Post# of 8054
Posted On: 04/12/2012 6:44:45 PM
By Diana Kinch
RIO DE JANEIRO -(MarketWatch)- The slight slowdown expected in China's first-quarter economic growth rate isn't hitting the iron-ore market, where prices continue to edge up and analysts remain bullish, said Steve Randall, managing director of London price provider The Steel Index.
After a big fall in October following China's introduction of measures to cool the property market, iron-ore pricing has traded in a very tight band so far this year and prices edged up in March and have continued to in April. Thursday, the pricing was at $148.80 a metric ton for iron-ore fines of 62% Fe content delivered into China, the highest so far this year, Randall said in an interview.
"There's no evidence of the world falling apart in iron ore and it's the same story for steel," Randall said. "There's no great fireworks going on."
He added, "It's ultimately supply and demand that rule the market. They possibly need 5% to 10% more iron ore this year in China and that's a big number."
Randall noted while China's overall iron-ore demand growth this year looks set to be lower than the 12% increase registered in some recent years, China's need for imported iron ore will continue to rise due to the decreasing quality of the country's own iron-ore reserves, which have an average of around 20% iron content, compared to 58% to 63% for Australian ore and 64% to 66% in Brazil.
China is due to announce its first-quarter gross domestic product figures Friday. Analysts are expecting a slowdown from 2011's annual growth rate of 9.2%.
Dow Jones Newswires
RIO DE JANEIRO -(MarketWatch)- The slight slowdown expected in China's first-quarter economic growth rate isn't hitting the iron-ore market, where prices continue to edge up and analysts remain bullish, said Steve Randall, managing director of London price provider The Steel Index.
After a big fall in October following China's introduction of measures to cool the property market, iron-ore pricing has traded in a very tight band so far this year and prices edged up in March and have continued to in April. Thursday, the pricing was at $148.80 a metric ton for iron-ore fines of 62% Fe content delivered into China, the highest so far this year, Randall said in an interview.
"There's no evidence of the world falling apart in iron ore and it's the same story for steel," Randall said. "There's no great fireworks going on."
He added, "It's ultimately supply and demand that rule the market. They possibly need 5% to 10% more iron ore this year in China and that's a big number."
Randall noted while China's overall iron-ore demand growth this year looks set to be lower than the 12% increase registered in some recent years, China's need for imported iron ore will continue to rise due to the decreasing quality of the country's own iron-ore reserves, which have an average of around 20% iron content, compared to 58% to 63% for Australian ore and 64% to 66% in Brazil.
China is due to announce its first-quarter gross domestic product figures Friday. Analysts are expecting a slowdown from 2011's annual growth rate of 9.2%.
Dow Jones Newswires
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