IRON ORE REPORT

Physical Iron Ore continued its upward trend once more despite a certain weakness inSHFE rebar which struggled to gain any momentum on the upside, closing at 3682rmbwhich was - 4 ticks down (- 0.11%) vs last done yesty. Spot Ore traded as follows: Therewere a couple of early big pays for a Rio PB Fines cargo of 190kt at 133 and GlobaOre62% was lifted at 132 soon after, before another print a buck lower at 131 settled themarket. Swaps rallied around 4 dollars at the front before drifting back a couple of bucksin afternoon trade: July 127, Aug `127.25- 129.75, Sep 124.5- 126, Oct 122.5- 123.5.

    Aug/Sep traded a few times again 3.00- 3.5, sep/oct 2.75- 3.00 and Sep/Q4 at 4.50.

    q413 trade at 121 then sold as low as 119.5 in the afternoon and q314 printed at 112.5.

    Cal14 got done at 114 in a scrap. q4/q1 was another trade of note, sold at 1.25 beforetightening back in to flat/0.50. Spot steel was pretty steady again with small gains on acouple of products. SGX cleared 1179kt on the day.

    Japanese stocks rise after the yen weakens and the Federal Reserve’ s Chairman saysthe pace of bond purchases would hinge on U.S. economic health, while Chinese sharesfall on concern Beijing won’ t use stimulus to boost a slowing economy. European stockmarkets rise on Thursday, as investors wait for U.S. Federal Reserve Chairman BenBernanke’ s second day of testimony before Congress, hoping for clues on the outlook forthe central bank’ s asset purchases. U.S. stocks rise Thursday as Wall Street reacts toeconomic data, earnings and a Capitol Hill appearance by Federal Reserve Chairman BenBernanke. Crude Oil futures spiked 2 bucks to hit 108 a barrel.