china gears up for splurge on projects, page-3

The IO price is moving back up as China's commerce minister has stated that China is heading for a rebound this month.
His comments are being seen as a positive and support recent comments by the President who stated that China will maintain steady and robust growth.
The catalyst for the rebound is expected to be increased levels of infrastructure spending and a relaxation in banking lending regulation.

Iron Ore-Spot offers rise, traders bet on more China demand

SINGAPORE, June 19 (Reuters) - Spot iron ore prices rose on Tuesday, on track to lift the benchmark rate for an eighth straight day in what would be its longest upward streak in seven months, on trade expectations of more Chinese mills replenishing stocks.

Price offers for iron ore cargoes from Australia to Brazil
and India in top market China rose by up to $2 per tonne on Tuesday, traders said, after prices increased for most
transactions on Monday.

That should further boost the price of benchmark 62-percent grade iron ore which marked its seventh straight
day of gains on Monday, matching a similar run in late February.

The price was up 0.7 percent to $136 a tonne, according to
price provider Steel Index, the highest since May 14. A further uptick on Tuesday would stretch iron ore's increase to an eighth day, its longest since mid-November.

'Traders are competing with one another to take cargo to
have some material in hand for the likely situation where mills will come out looking to replenish further,' said a
Singapore-based physical iron ore dealer.

'There's still business with mills, but the majority of
trades at the moment I'd say are being purchased by traders.'