Find below the iron ore price table for September 9, 2013:
Better prices on better economic data. Maybe more support today but it should pass quickly and downward pressure resume on seasonal weakness.
In news, China is still sucking in plenty of ore:
China imported 69.01 million tonnes of iron ore in August, down 5.6 percent from July’s record high of 73.14 million, data from customs showed.
Despite the fall, August arrivals were still the third-highest on record and a gain of 10.5 percent from a year ago.
The strength in imports has been driven by robust Chinese steel production, with daily runs hovering at above 2.1 million tonnes in the first 20 days of August, up from a July average of 2 million.
The rush to replenish inventories had lifted global benchmark iron ore prices .IO62-CNI=SI by 6 percent, to a 5-month high of nearly $143 atonne in August. But with mills now well-stocked, trade sources said prices could stay range bound at current levels of around $130 a tonne.
“The next month looks pretty hard to call – it is too early for restocking,” said Graeme Train, a Shanghai-based analyst at Macquarie Bank.
“Iron ore supplies are going to increase and I don’t think they (steel mills) will feel any kind of urgency to hold more inventory than they have at the moment. I think they are in a bit of a holding pattern now.”
I expect more weakness than that but not with conviction. In general I agree. The mills will wait. The October plenary of the National People’s Congress will be a big moment for iron ore prices.