Spot iron ore offer prices have shot past $100 per tonne cfr China and offers are now as high as $105 per tonne, said market sources.
Prices for 63.5% Fe content Indian iron ore have been on the rise since Australia and Japan agreed benchmark prices, and are now higher than $98 per tonne earlier this week, and $94-96 last week.
"We sold cargo to steel mills at $101 per tonne," an iron ore trader in Shanghai told MB. "Offer prices have gone up to $103-105 per tonne.
"Spot prices have continued to rise alongside steel prices, which has been gained for the last 15 consecutive weeks, said market participants.
Construction steel prices, in particular, have gained 100 yuan every day in the last three days and major mill Shougang this week raised its construction steel prices for August delivery by 450-550 yuan per tonne.
Australia's continued absence from the market is also adding upward pressure to Indian iron ore prices."Next week, Indian iron ore will see another $3 per tonne increase," estimated the trader in Shanghai.
Material at main Chinese ports also benefited from rising steel prices and iron ore forward delivery prices.
Indian fines of 63.5% grade were traded at 710-720 yuan per tonne after taxes, a trader in Tianjin said.Stockpiles at major Chinese ports rose to 69.37 million tonnes as of last Friday, up 670,000 tonnes from the previous week.
Port congestions at Tianjin and Caofeidian remain severe with waiting times of 15 and 13 days respectively, according to Custeel.com.India-China freight rates rose to an average of $22.5-23.5 per tonne, from $20-23.5 per tonne last week.
By Metal Bulletin
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