Was offered 1.30 early today on a dummy sale then the day ends with a few 500k sells at 1.40 ? Beginning to wonder if MM's smell a move on this and want to gather a few in ? We would be entitled to party if this is a good omen !
The price of iron ore gapped higher again on Monday after top consumer China surprised markets with the third interest rate cut in six months following data showing a steep drop-off in the country's trade with the world in April.
The benchmark 62% Fe import price including freight and insurance at the Chinese port of Tianjin added $2.00 or 3.3% to $62.50 a tonne according to data provided by The SteelIndex, a 10-week high.
The Metal Bulletin's 62%-index at the ports of Qingdao-Rizhao-Lianyungang also continued to improve with the price climbing 1.6% to $63.02 a tonne. The rally in lower grade ore saw MB's 58% Fe fines jumping to $54.17, the highest since January.
Year to date China's imports of iron ore still show gains over record-breaking 2014 A rally that began on April 16 seemed to run out of steam at the beginning of May, but today's advance brings to 33% the commodity's gains since the spot price hit record lows at the beginning of April. The price slumped 47% last year and entered 2015 above $70 a tonne.
Beijing's decision to stimulate lending and make it easier for banks to provide credit by also cutting reserve requirements for financial institutions comes amid growing signs of a slowdown in the world's second largest economy.
On Friday, against expectations of a rebound in April, Chinese exports dropped more than 6%. But the real shocker was imports which plummeted 16.2% according to customs data.
Compare to the headline figure the country's iron ore imports remained relatively robust, declining 3.8% year-on-year in April. The country took in 80.2 million tonnes of the steelmaking raw material last month compared with 83.4 million tonnes a year earlier. Year to date China's imports still show gains compared to 2014 record-breaking pace.
The interest rate cut is expected to bring immediate relief to the country's debt-laden state-owned enterprises, many of which operate in the resources and metal industries. Stimulus spending should also boost infrastructure spending and shore up the struggling housing industry which is responsible for a large chunk of steel demand.
Steel consumption in China fell last year for the first time since 1995, but the latest figures from the country's steelmakers show a 3.9% pickup in production to an average of 1.79 million tonnes per day at the end of April.
I personally feel quite relaxed about the process. I fee confident, in that I know what's coming in the long-run. They will be further twists and turns, but BEM bares no resemblance to the company in 2010. Everything is far more measured and professional.
It's little consolation to those with higher averages, but let's take it a penny at a time... BEM will achieve the outcome that we seek, and the decision from the Swedish Government will take the company forward.
We've been here a long time, so any possible additional wait of a few more months I think will be easier for us to take. If it means a secure future for Beowulf and a much better sp than we see now, then we have to like that. We long-term shareholders deserve it too, for sticking by the Company on what hasn't been an easy path for all concerned.
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