Tue Jan 29, 2013
* Chinese mills may have adequate iron ore stocks
* Shanghai rebar down slightly, but near 7-month top
By Manolo Serapio Jr
SINGAPORE, Jan 29 (Reuters) - Spot iron ore prices steadied as Chinese steel mills felt no pressure to further boost stockpiles ahead of the Lunar New Year, limiting deals in the physical market.
Most steelmakers in top iron ore importer China may have adequate inventories of the raw material to last them through the week-long holiday in February, traders said.
Iron ore prices hit a 15-month high of close to $160 per tonne earlier this month, reflecting restocking efforts that began in December.
"Some small- to medium-sized mills are still looking for reasonably priced cargo, but most are done with stocking up for the Chinese New Year," said an iron ore trader in the port city of Rizhao in China's eastern Shandong province.
Many mills have iron ore inventories that are good for at least 20 days of use, which may be enough until the end of next month, he said.
Iron ore with 62 percent iron content, the industry benchmark, stood at $148.40 a tonne on Monday, little changed from $148.60 on Friday, based on data from Steel Index.
Price offers for most imported iron ore cargoes in China were steady on Tuesday, according to Chinese consultancy Umetal.
But Brazilian cargoes were being offered at $1 per tonne higher amid limited shipments recently from the rain-hit key supplier.
Those keen on buying immediate cargoes may opt for iron ore lying in ports, although it will be difficult to find cargo trains to transport them, as the Lunar New Year approaches with railways clogged by passenger trains, said a trader in Shanghai.
"If they buy now they will have to pay for storage to keep the iron ore in the ports, so they might as well wait until after the holiday," he said.
A dull Chinese steel market is also a disincentive. The price of steel billet in China's key Tangshan area has been steady at above 3,200 yuan ($510) per tonne since Friday, and so are Shanghai rebar futures.
The most briskly traded rebar contract for May delivery on the Shanghai Futures Exchange was off 0.2 percent at 4,060 yuan per tonne by the midday break. But rebar remains near Friday's session peak of 4,085 yuan, which was a seven-month high.
Shanghai rebar futures and iron ore indexes at 0434 GMT
Contract Last Change Pct Change
SHFE REBAR MAY3 4060 -9.00 -0.22
THE STEEL INDEX 62 PCT INDEX 148.4 -0.20 -0.13
METAL BULLETIN INDEX 149.58 +0.06 +0.04
Rebar in yuan/tonne
Index in dollars/tonne, show close for the previous trading day
($1=6.2226 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Clarence Fernandez)
* Chinese mills may have adequate iron ore stocks
* Shanghai rebar down slightly, but near 7-month top
By Manolo Serapio Jr
SINGAPORE, Jan 29 (Reuters) - Spot iron ore prices steadied as Chinese steel mills felt no pressure to further boost stockpiles ahead of the Lunar New Year, limiting deals in the physical market.
Most steelmakers in top iron ore importer China may have adequate inventories of the raw material to last them through the week-long holiday in February, traders said.
Iron ore prices hit a 15-month high of close to $160 per tonne earlier this month, reflecting restocking efforts that began in December.
"Some small- to medium-sized mills are still looking for reasonably priced cargo, but most are done with stocking up for the Chinese New Year," said an iron ore trader in the port city of Rizhao in China's eastern Shandong province.
Many mills have iron ore inventories that are good for at least 20 days of use, which may be enough until the end of next month, he said.
Iron ore with 62 percent iron content, the industry benchmark, stood at $148.40 a tonne on Monday, little changed from $148.60 on Friday, based on data from Steel Index.
Price offers for most imported iron ore cargoes in China were steady on Tuesday, according to Chinese consultancy Umetal.
But Brazilian cargoes were being offered at $1 per tonne higher amid limited shipments recently from the rain-hit key supplier.
Those keen on buying immediate cargoes may opt for iron ore lying in ports, although it will be difficult to find cargo trains to transport them, as the Lunar New Year approaches with railways clogged by passenger trains, said a trader in Shanghai.
"If they buy now they will have to pay for storage to keep the iron ore in the ports, so they might as well wait until after the holiday," he said.
A dull Chinese steel market is also a disincentive. The price of steel billet in China's key Tangshan area has been steady at above 3,200 yuan ($510) per tonne since Friday, and so are Shanghai rebar futures.
The most briskly traded rebar contract for May delivery on the Shanghai Futures Exchange was off 0.2 percent at 4,060 yuan per tonne by the midday break. But rebar remains near Friday's session peak of 4,085 yuan, which was a seven-month high.
Shanghai rebar futures and iron ore indexes at 0434 GMT
Contract Last Change Pct Change
SHFE REBAR MAY3 4060 -9.00 -0.22
THE STEEL INDEX 62 PCT INDEX 148.4 -0.20 -0.13
METAL BULLETIN INDEX 149.58 +0.06 +0.04
Rebar in yuan/tonne
Index in dollars/tonne, show close for the previous trading day
($1=6.2226 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Clarence Fernandez)
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