Mainstream prices of Chinese iron ore average CNY 886 per metric tonne December 17th,up CNY 1 from the previous day.Mainstream market prices rose in Hebei but stabilized in other markets.we expect Chinese iron ore market to see some rises in the short run prospect.
In Hebei,part steel mills located in Hebei like Jinxi Steel announced on December 17th to raise purchase price for Chinese iron ore by CNY 20,although most steel mills in Hebei stop Chinese iron ore purchase and choose to sit on sidelines.
In Northeast China's Liaoning,sentiment slightly improved as semis hiked CNY 80 to CNY 100 on this weekend in Tangshan,although as of December 17th,mainstream market quotations,mills purchase prices and market trades did not seem improved.Miners located in Benxi and Fushun set their quotations for 65%fines at CNY 660 to CNY 680,versus 650 to 670 on December 11th.
With continuous rises in offshore quotations and a recovering steel market in the country,participants are prepared for more rises.We expect local market to see some rises in short run.