Spurred by low stocks among Chinese traders and steel mills buying activity has spiked suddenly in China culminating in 9% price escalation. Following the swift inventory depletion in last 2 months (19%) as economic and demand uncertainty had shifted the focus to existing inventory rather than new transactions. However enhanced import levels during these months were reminiscent of steel mills indulging in domestic trading of stockpile.

Nevertheless, trading companies are mainly buying iron ore now, while mills are careful about purchases having sufficient stocks for the near term. Even those who have material to work only during a 15-day period are in no hurry to close deals finding current prices too high. Only some steelmakers who urgently need to restock have to accept suppliers' offers.