After over 2 months of hibernation iron ore levels made a turnaround climbing couple of USD by 3%. Even though finished steel levels remained stolid in China despite good PMI and steel futures increasing for a change perked up iron ore market levels by USD 2 per tonne this week.

It was anticipated that iron ore levels would bottom out USD 90 per tonne since unviability of domestic iron ore had closed down mines thereby making it imperative for the mills to import.

Moreover blistering production of steel in recent months has kept the import moving at smooth pace culminating in stock of 115 million tonne. May steel production was 70.4 million tonne YoY 2.6 % growth and the pace remains unabated in June touching daily steel production of 1.8326 million tonnes per day.

Price rally is likely to be sketchy unless steel demand picks up and inventory starts moving. Moreover financing problems related to credit lines squeeze for traders continues to impede business.