The surge in Chinese steel prices in last few days, coupled with dwindling inventories of iron ore with Chinese steel mills and traders on the back drop of record crude steel production levels, as reflected by 50million plus tonnes in February, the imported iron ore market has again become hot in last few days.
As e result of heightened activity, the spot price levels for import of Indian iron ore have almost recovered to the recent high in March beginning.
As the Chinese buyers made a hasty re entry, Indian miners pushed up there FOB levels by 3% to 7 % last week. Tightness on supply side is being further propped up by frenzy on the buying side resulting in such steep hike.