Singapore (Platts)--21Dec2012/1205 pm EST/1705 GMT
Spot prices of seaborne iron ore remained static on the last trading day of the week in thin trading activity as buyers and sellers wait for a clearer steel market direction. Platts assessed the 62% Fe Iron Ore Index unchanged at $137.25/dmt CFR North China. "The market is dead quiet, no offers or bids from sellers and buyers, as everyone is waiting to see where the price of steel is heading over the weekend before any commitment for iron ore," said a Shanghai-based trader. Some sources remained upbeat on steel prices in January, saying the Chinese government would introduced new expansionary policies that would spur steel consumption and lend support for stronger ore prices. Jiangsu Shagang, China's largest privately owned steelmaker, announced Friday the price of 16-25 mm diameter HRB335 rebar at Yuan 3,700/mt ($588/mt) ex-works for December 21-31 delivery, an increase of Yuan 50/mt from the previous 10-day period. Others, however, said many mills preferred spot cargoes based on floating price indexes, citing uncertainties in steel prices. A Jiangsu-based steelmaker said it had sold two Capesize of medium- grade Australian fines on a floating price based, with $1-2 premium to the monthly average of Platts Iron Ore Index in January. "Mills are very risk-adverse. They need to buy iron ore and yet are wary of a fall in the price of steel and ore if steel fundamentals did not improve as predicted," the steelmaker said. Rebar futures stayed firm, as the most active May rebar futures in Shanghai last traded Yuan 4/mt higher day on day from Thursday at Yuan 3,793/mt ($603/mt), and settled at Yuan 3,793/mt, up Yuan 21/mt day-on-day. Physical steel remained rangebound as the spot price of square billet in Tangshan was unchanged from Thursday at Yuan 3200/mt ex-stock, a Tangshan-based mill said. Separately, a 290,000 mt cargo of 63.5%-Fe Brazilian fines was sold at $135/dmt CFR China on globalORE platform. This shipment is due to arrive in China by February, according to traders with access to the platform. This large cargo would have obtained a discount due to the fact that it could only fit into a limited number of ports. This cargo was not reflected in the Platts assessment Friday as it was not clear if bidders knew what brands they would be taking delivery of at the point of trade.--Melvin Yeo, melvin_yeo@platts.com --Annaisa Jeffries, annalisa_jeffries@platts.com --Edited by Jeremy Lovell, jeremy_lovell@platts.com