Source: Hellenic Shipping News
Spot market morning offers basically held stable today and partial traders see strong wait-and-see attitude, with late quotations. Futures market falls continuously and some traders stop quotations. Real market transaction prices are negotiable for each deal. Steel mills pay high attention to high grade fines, while real transaction is not favorable. Steel mills mainly purchase raw material to ensure normal production and their purchasing enthusiasm is unfavorable.
A steel mill said “We generally make spot market resources every week. However, iron ore futures market has seen large fluctuations in recent days and the future prices see large downturn today. Thus, we have postponed purchases. Steel mills focus on stocks consumption. Some traders are bearish towards the profits of steel mills given strong performance of iron ore market in recent days. We estimated that spot market should return a reasonable level in the short term and spot market transaction prices are likely to decrease by a small margin”.
A trader expressed that steel mills are active to make enquiries, while real transactions show small amount. Many steel mills and traders make purchases based on futures market trend, which results in sentimental market mood. Spot market prices are predicted to edge down under falling futures market. There are many small-sized traders in partial North China ports and they see obvious desire to deliver cargos to avoid risks under cost pressures.