Iron Ore-Spot may struggle to extend rally on demand view
Friday marked iron ore's sixth straight daily rise, its longest winning streak since late February.
A fall in spot iron ore prices to two-week lows in early June lured buyers back into the market as Chinese steel mills replenished stocks.
But unless steel prices rebound, the iron ore rally may soon fizzle out, as mills finish restocking and traders run out of buyers willing to take cargoes at current prices.
"Caution is building up in the market. We haven't really seen any big moves in steel prices," said an iron ore trader in Shanghai.
The most-traded rebar contract for October delivery on the Shanghai Futures Exchange closed up 0.2 percent at 4,129 yuan ($650) a tonne.
Still, miners continue to sell cargoes on the spot market. Top iron ore exporter Vale is offering 98,000 tonnes of 62.8 percent grade Brazilian iron ore at a tender closing later on Monday, traders said. ($1 = 6.3651 Chinese yuan) (Reporting by Manolo Serapio Jr.; Editing by Daniel Magnowski)
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