Seaborne iron ore prices for 62% Fe fines have remained stable after observing a decline in week’s beginning.
The iron ore fines index assessed at USD 72.6/MT CFR China today. Towards the beginning of the week, it was assessed at USD 73.5/MT, CFR China. Thin trade activities resulted in fall in iron ore prices.
The large inventories at Chinese ports amid reduced consumption due to production cuts are rendering a reduction in iron ore prices. The stocks of about 146 MnT (as on 22 Dec’17) of iron ore is available at Chinese ports facilitating easy and excess availability of material. The fluctuating prices of the material are rendering mills to buy smaller lots to secure from the volatility of the market.
The reduction in prices is favored by the winter production cuts which is reducing the material demand. Besides, many steelmakers have stocked enough material to resume operation ahead of winters further reducing the demand.
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