MONTHLY: Supply surplus to cap iron ore prices in Dec

With iron ore shipments expected to rise markedly near year's end, imported iron ore supply in China will loosen further in December with a marked rise in carrier arrivals, while demand for the steelmaking material is set to cool amid production cuts at steel mills, Mysteel predicts in its latest monthly report on the commodity.

Although weakening fundamentals may pressure iron ore prices, the report notes that positive macro-economic signals and anticipated restocking demand among steelmakers will lend some support. Consequently, prices will fluctuate within a wider band this month rather than relentlessly tracking south, the report concluded. In November, Mysteel SEADEX 62% Australian Fines