Steel price maintained the uptrend for the second day this week sending encouraging signal to the iron ore prices as well which rallied which broke silence after 12 days improving by 3%.

Finished market replenishment of stocks at traders and stockiest end is expected to pick up after the passage of summer. However domestic mills in China are maintaining caution by reducing price for July. A sustained improvement for over week will certainly entice them to improve level in second half.

Strength was evident across the market buoyed by a recovery in steel prices led to a rally in seaborne prices as mills felt the need to replenish stocks. Iron ore stockpile at ports remained at manageable levels of 71 million tonne. Mills have running low on stocks off late being absent from the market for some time.

Scrapping of the import license regulations would certainly give fillip to the sagging price of iron ore in July (w.e.f 1st July) as mills would be more eager to source directly from the miners leading to more buying in the short run.