“Spot iron ore prices looks bottomed out; might regain on restocking”- UBS

Iron ore prices, down 30 percent this month and reached $130/mt for 63.5/63 Fe cargo, and have almost bottomed out as Chinese buyers replenish stocks and shipments from India almost halved, according to UBS

“The scale & speed of this week’s correction has little to do with trade fundamentals,” UBS said. “The reported collapse in trade liquidity instead suggests a ‘buyer’s strike’, with consumers deferring purchases until prices stabilize.”

The price may rebound as much as $30 a metric ton to near $150 a ton in coming weeks, UBS analysts led by Sydney-based Tom Price wrote in a report today.

Iron ore shipments have been extremely poor India as Karnataka and Goa is closed on account of illegal mining where as permits are not issued by Orissa mining authorities for last one month, said an Indian exporter based in Mumbai.