Spot iron ore prices in China dropped by $ 6-7/MT over the week due to thin buying interest amid slow demand for steel.
Highlights of the week:
* Offers for Fe 63.5/63 of Indian fines went
down to reach $ 145-147/MT (CNF), from the quotes of $151/MT seen last week.
* Australia's BHP, sold 90,000 MT of Newman iron ore fines at $144/MT
i.e. down from $147 at its last done deal. It also sold 80,000 MT of Yandi
fines at the tender of $122/MT versus a previous done deal of $126/MT.
* Iron ore swaps market witnessed low volume reflecting investor's
optimism of more price dips in the near term. The Singapore Exchange-cleared
November contract slipped down to reach $135/137/MT and December contract
reached $1.34 to $128.5/130.5/MT
* Waiting period for vessels
carrying iron ore from Indian ports reduced to 0-2 days on non-availability of
cargoes.
Steel Mills in China show no
hurry in replenishing stockpiles given by the recent weakness in steel prices
and there are plenty of cargoes at the ports. So, slower steel demand &
weaker forward swaps point out for further declines in the spot rates.
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