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Iron ore price rises on re-stocking in China

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The benchmark iron ore price has risen to $120 a tonne as Chinese steel mills re-stocked after stocks had run down due to perceptions of a slower recovery.

The price had fallen 25 per cent since earlier this year.

Traders in Hong Kong spoken to said the iron ore price could be range bound between $100 - $120 a tonne for some time, but that this would depend on how fast the Chinese economy gathered speed in the second half of the year.

Stocks at Chinese ports rose 6.5 percent to 70.6 million tonnes from a four-year low in March.

China accounts for around 55-60 per cent of global seaborne iron ore demand.

Some analysts are tipping the price could gain with an expected uptick in the level of useage for iron ore in China in the second half of 2013. Reported by Proactive Investors 7 hours ago.

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