More than half of the respondents think the China's imported iron ore market will move stable for the week of October 29-November 2, 2012, according to a new opinion poll conducted by Umetal among 30 domestic steel mills, 50 iron ore traders and 20 suppliers on imported iron ore market trend.
The survey found that 62% believed imported iron ore market would stay stable; 27% said the market would go down; and only 11% of them thought the market would go up.
Do you think imported iron ore prices will go up or down, or just remain stable with minor correction?
Go up - 11%
Go down - 27%
Range bound - 62%
Published October 26, 2012
Unfavorable Factors:
-- Traders will face capital pressures at the end of October and they may undersell their resources.
-- Crude steel output sees a rally and suppresses steel market. Additionally, steel mills have basically finished their stock replenishment.
Favorable Factors:
-- Foreign quotes for imported iron ore rise slightly influenced by tender invitation activities. Available resources from Rio Tinto and BHP Billiton are in tight supply. Downstream market demand stays good and overall market will show upward trend in the short term.
--Traders show low desire to cut prices given that government's economic stimulus package will promote demand. Market sentiment remains good on account of fair profit in steel mills.
-- Steel futures and billet market will mainly keep stable amid small fluctuations along with the upcoming 18th National Congress of the Communist Party of China (CPC),
--Steelmakers' enquiries and market transactions remain flat under rising imported iron ore prices. Additionally, traders mainly involve in the tender invitation activities recently.
(Disclaimer: The opinions expressed on this article is for general information only and shall not constitute or be considered investment advice or a solicitation for the purpose of the purchase or sale.)