Chinese Spot Iron Ore Fines Index Cross USD 94/MT

Chinese spot iron ore fines (Fe 62%) index hit two-month high to USD 94.35/MT, CFR China today on 09th Dec 2019. The prices increased by almost USD 5/MT W-o-W as against USD 89.4/MT, CFR China end of last week. The prices have witnessed 2 months high as it was last witnessed at USD 94/MT two months back on the same date Oct 2019. The hike is attributed to Chinese steel mills restocking iron ore before upcoming holidays and prices are likely to remain supported in the near short term.

As per reports, to boost bank lending, the People's Bank of China (PBOC) has pumped in trillions of yuan to meet liquidity demand from financial institutions by repeatedly cutting banks' reserve requirement ratios since early 2018.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 129.5 MnT this week as against 131.75 MnT a month back.

Also, Chinese iron ore futures on the Dalian Commodity exchange has seen a sharp hike today.