India Iron Ore Futures Rise A Tad But Volumes Thin.

India's iron ore futures rose a tad on Friday evening in anticipation of price gains after the Chinese market opens, analysts and traders said.

Volumes remained thin on the sixth day of the world's first futures trade of the steel-making ingredient, though it is limited to only Indian players.

Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps.

The most-active iron ore, 62 percent fines, for March delivery <0#ICIO:> on the Indian Commodity Exchange was 0.56 percent higher at 8,063 rupees ($176.8) per tonne at 5:09 p.m.

Volumes recorded were at 25,000 tonnes.

While on the Multi Commodity Exchange, the country's largest by tunover, was trading 0.36 percent higher at 7,342 rupees a tonne.

Chinese buying and tight supplies had lifted overseas spot-based indices to a record, even as Chinese markets were shut for New Year holidays and trading will resume only on Feb. 9.

Global supplies are tight due to a ban on exports from the southern Indian state of Karnataka, which contributes 25 percent of India's total exports.

India is the world's third-biggest iron ore exporter after Australia and Brazil and normally exports around 100 million tonnes of iron ore annually.

India's Supreme Court is due to decide mid-February on whether to lift the ban, a ruling, analysts say, could influence a plan by another Indian state, top iron ore producer Orissa, to ban exports as well and should help set the direction for prices.

Source : reuters.com