Metallica
Cost
push help steel prices gaining
During
the last fortnight (ending 14th Jan’13) steel prices saw a
good jump after a long consolidation. Iron ore prices on the other hand
continued to rise
·
The
CIS Black Sea (fob) export HRC prices gained 9% to US$580/ tonne. Domestic
prices in China rose by 3.3% during the same period to US$652/tonne. In
India
long product prices saw some improvement, while flat product prices
remained steady
·
Iron
ore prices continued their upward movement on due to higher imports from
China ,
as port inventory fell recently towards 72 mt. The 62% and 58% Fe grade iron
ore prices jumped 7% and 8% to US$154.6/tonne and US$145.7/tonne
respectively
Believe,
improvement in steel prices is due to cost push rather than demand pull, as
iron ore prices continued to soar. We would like to wait and watch whether steel
prices can sustain their recent gains.
Base
metals during the last fortnight remained quiet and ended flat on a
fortnightly basis
·
Copper
and aluminium gained 1% each to US$8030/tonne and US$2063/tonne
respectively while zinc and lead LME lost 2% and 1% to close at
US$1996/tonne and US$2305/tonne respectively. USD index remained stable at
79.5
Believe,
USD index would play a major role in deciding the base metals price
direction in the near term
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