Spot Iron ore prices are expected to decline as steelmakers
in China have restricted their output due to falling demand.
A seasonal upturn won't be enough to offset weakness in
demand, said Arden, a former geologist who’s followed prices for the past 15
years.
According to Industry experts, “Iron-ore prices have risen
dramatically since the belting they got last month but they may get another
belting soon. Prices have peaked.
There's usually a rise in buying from Chinese steelmakers at this time of year.
So, a seasonal upturn won’t be enough to offset weakness in demand.”
The nation's credit-tightening policy has curbed demand and
prompted local mills including Baoshan Iron & Steel Co. to cut prices,
while the debt crisis in Europe has raised concerns that economic
growth may slow in emerging countries, Tokyo Steel Manufacturing Co. said
yesterday.
“Short-term seasonal factors have led to this month’s rise
in ore prices, as the northern-hemisphere steel mills stock up ahead of
winter,” said Peter Strachan, who heads Perth-based independent advisory firm
StockAnalysis.
“Some steel mills are starting to throttle back in
response to lower demand and prices for steel generally. Prices will weaken
from now into 2012.”
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