Find below the iron ore price complex chart for February 7, 2013:
And the chart:
And rebar futures, which were flat.
The good run in long rebar futures and spooky strength of spot appears to have finally shoved iron ore futures through resistance. The longer the spot price remains high, the more this will happen, until they both fall together. The future is now in these markets.
In news, India is worth discussing again today with the announcement of a draft plan for the steel sector. From the India Times:
NEW DELHI: Identifying lack of raw material security as a major hurdle in augmenting steel capacity, the National Steel Policy draft has proposed allocation of captive iron ore mines to producers through open bidding, and putting some mines in a general category for all bidders.
The draft has projected India’s iron ore requirement to increase to 392 MT by 2025-26, from around 200 MT at present.
“Lack of raw material security has been one of the major causes for tardy progress of steel capacity expansion… The government will consider to further strengthen the provisions of allocation of captive iron mines to steel producers in a transparent manner through a process of open bidding for all the well prospected mines,” the draft said.
The government may further consider putting some of the iron ore mines in a general category open for bidding by all.
The Steel Ministry has sought comments from stakeholders and the public by February 20.
It also said that government will open up all the mining leases held by the steel producers on captive basis, which are yet to be operational and those where no investments have so far been made, for bidding among other steel producers.
“While doing so, it will be ensured that the same lies in excess of the projected requirement of the respective producers for the next thirty years,” it said.
The policy draft has pegged the country’s steel making capacity at 300 million tonnes (MT) by 2025-26 to ensure a projected production level of 275 million tonnes by then.
That is not a plan that will lift export bans in a hurry. Good news for Australian iron ore even if in the longer term India secures self-sufficiency.