Bloomberg reported that to the price of iron ore delivered China, the largest importer, climbed to a 14 month high in what Credit Suisse Group AG described as one last hoorah.
According to the Steel Index, ore with 62% content at the port of Tianjin rose 3.4% to USD 149.80 per dry metric tonne, the highest since October 18th 2011, for an increase of 7.5% over the past week.
The steel making raw material is rebounding from a slump to a near three year low in September after demand stalled in China, with price swings fueling record trading in iron ore swaps, used to bet or hedge on the future price in 2012.
Credit Suisse said that “A steady improvement in Chinese demand, and faint stability elsewhere, have created the conditions for one last run up in iron ore prices before new supply causes them to ebb back.”
The bank said that the H1 of 2013 will be as good as it gets for iron ore prices, forecasting prices to dip from an average USD 130 a tonne in the Q1 to USD 125 for the next 3 months.
According to data published on the website of SGX AsiaClear, a Singapore based clearing house, buying and selling of iron ore swaps rose to 111.5 million tonne in 2012, from 43.4 million tonne in 2011.
Source:
http://www.steelguru.com/raw_material_news/Iron_ore_price_rises_to_14_month_high_in_rally/297174.html
