Global iron ore prices tick up $6-8 per tonne

BANGALORE: Global iron ore spot prices have suddenly spiked by about $6-8 per tonne on the back of buying by Chinese steel mills. Spot prices are trading around the $167-168 per tonne mark. The rally means that the spot prices are currently ruling at a small premium of about $5-7 per tonne compared to the quarterly weighted prices (used by Brazilian and Australian iron ore suppliers to China).

Traders who spoke to ET are, however, advising caution indicating that the buying is a regular exercise aimed at meeting the winter demand from mills located in the northern part of China. “China needs iron ore of different grades ranging from low to high and has been placing orders to secure the same.

However the absence of supplies from India has caused the prices to spike up but we believe that this would be more of a short-term rally,” said Anirban Sen of SST Logistics.