Spot iron ore prices have fell to
three month lows earlier this as China is shut for a public holiday and
participants were unsure whether steel mills will resume buying the raw
material next week.
“If steel prices in China
continue to fall, iron ore prices will fall. There's no option, steel mills
will not buy, said a Singapore-based iron ore trader.”
However, Australian Newman Fines (Equal to Indian 63/62) was heard being sold
at $ 172/MT. whereas, a cargo of Indian fines Fe 63.5/63 was sold at $ 154/MT
FOB
Iron ore forward swaps also fell
on Friday as investors bet on declining spot rates when top buyer China returns
next week after a week-long break.
The Singapore Exchange-cleared
November contract dropped $1.33 to $153 a tonne and December lost $1.17 to
$148.33. Volumes traded on SGX were a lean 100 lots or 50,000 tonnes.
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