China's spot iron ore import prices, based on Indian material at 63.5% Fe, this week posted a wider range of $79-82 per tonne from last week's $81 per tonne in even thinner trading.
Abundant inventory at most Chinese steel mills and higher prices are major reasons for the receding demand, according to market participants."Prices have been surging, from some $60 per tonne cfr to the present over $80 per tonne cfr, since mid-November, which has prompted most Chinese buyers to be very cautious as the Chinese economy in 2009 is still a big question mark," said an iron ore trader in Beijing.
An iron ore trader in Shandong province shared the sentiment."I do not even dare to anticipate prices in the short term, such as after the Chinese New Year holiday. All predictions could turn out wrong, so the best resort for now is to minimise speculation and only import when I have a steel mill in China ready to buy," he said.
China goes on holiday next week to celebrate the Chinese New Year.
Last month, China's iron ore imports from India, the largest spot market supplier, increased 151% month-on-month to 10.19 million tonnes, according to Chinese customs.And for the whole of 2008, China imported 90.97 million tonnes of iron ore from India, up 15% year-on-year, one percentage point short of the country’s overall iron ore import increase for 2008.
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