Business Line reported that Sesa Goa shares may remain in focus as iron ore prices are trading at a seven month high. Iron ore prices gained momentum as China’s factory output and retail sales jumped for the last three months, signaling an economic recovery.
According to the report, Chinese ore imports reached 65.78 million tonnes in November, the second highest level after a record 68.97 million tonne in January 2011. Stockpiles held at China’s major ports dropped 3.3% to 71.32 million tonne as of December 21st, the lowest since September 10th 2010.
The inventories, owned mostly by mills and traders in China, have dropped for eight straight weeks. Weekly inventories dropped to 73.81 million tonne as of December 21st. This will help NMDC and Sesa Goa that mine iron ore and export.
However, gains will be limited for the latter, as some of its ore mines still face ban from a few State Governments.
Source:
http://www.steelguru.com/raw_material_news/Sesa_Goa_remain_in_focus_as_iron_ore_prices/296907.html
