Iron ore prices to keep NMDC, Sesa Goa hot

NMDC and Sesa Goa shares may remain in focus as iron ore prices are trading at a seven-month high. Iron ore prices gained momentum as China’s factory output and retail sales jumped for the last three months, signalling an economic recovery. Chinese ore imports reached 65.78 million tonnes in November, the second-highest level after a record 68.97 mt in January 2011, according to Bloomberg. Stockpiles held at China’s major ports dropped 3.3 per cent to 71.32 mt as of December 21, the lowest since September 10, 2010. The inventories, owned mostly by mills and traders in China, have dropped for eight straight weeks. Weekly inventories dropped to 73.81 mt as of December 21, researcher Mysteel.com said on its Web site. This will help NMDC and Sesa Goa that mine iron ore and export. However, gains will be limited for the latter, as some of its ore mines still face ban from a few State Governments.