CHINESE IRON ORE MARKET EXPECTS IRON ORE AT US$ 45

Chinese market sources Tuesday said they expect iron ore prices to hit a ceiling at $45/dry metric ton for 62% Fe content in January despite a steady recovery from a record low of $38.50/dry mt on December 15.

Platts assessed the 62% Fe Iron Ore Index at $42.70/dmt CFR North China Monday, down 55 cents from last Thursday, but still up $4.20/dmt from the record low.

Chinese market sources attributed the recent recovery in iron ore prices to a pickup in buying interest from China at record low prices and discharge delays due to smog at ports across north and east China in the past fortnight.

Nevertheless, they did not expect iron ore prices to rise beyond $45/dmt.