In China, the growth of explosion prices for iron ore continues

The steel market in China is on the way to recovery, as evidenced by the jump in the spotal prices of iron ore even further from five maximums of the month.

Traiders in Shanghai find that it is difficult to accept rising prices for such a high level after a quick rise in the last few weeks, so they prefer to wait and see. But the prospects remain positive and prices will be on the upward trend again, according to traders.

However, on the Shanghai futures exchange, the reinforcement supply contracts in October decreased by 0.8 percent. The decline occurs despite the growth of the index of purchasing managers up to 50.1 in August compared to 47.7 in July, which is a sign of stabilization in the second largest world economy.

Optimistic data still serves as a good omen for the steel market in China in combination with the peak of the consumption season, which begins in September. An increase in the import of raw iron ore and crude oil in July is a good sign. The price of the reinforcement used in construction is on the way of growth for the third month in a row.

The recent increase in steel prices laid the foundation for increasing appetites for iron ore raw materials, although traders say that the impulse, which led to an increase in prices last week to five -month peak, seems to be slowed down. Since in reality there was no sufficient increase in the price of steel, which would justify such a significant increase in the price of iron ore.