Spot iron ore prices in China fell to reach 3 month low by
the end of the week as buyers hesitated to take positions in the falling market
and activities were subdued due a week long National Holiday.
Highlights of the week:
* Quotes for Fe 63.5/63 of Indian fines reached $173MT from
the previous week's quote of $178/MT. Australian 62% Newman fines however
remained stable with a cargo being sold at $172/MT (CNF).
* Iron ore forward swaps also fell as traders expect spot
rates to decline when top buyer China returns next week after a week-long
break. The Singapore Exchange-cleared November contract dropped $1.33 to reach
$153/MT i.e. cheaper by $14 from the current spot rates.
Comment by:
Trader: “If steel prices continue to fall
then iron ore prices will also fall but who knows what next week will bring?”
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