Spot iron ore prices have fell to reach their lowest since
early July on slow buying from Chinese mills
Indian exporters have reduced their quotes for Fe 63.5/63 to
$ 180/MT on extremely weak buying but there are no buyers even at such low
levels.
“There are some sporadic transactions but it's very,
very thin. It's very unclear where the market is at the moment,” said a
Singapore-based iron ore trader.
Falling steel prices and uncertain global economic
conditions have kept Chinese buyers out of the market. But looking at the situation
of tight supply from India, Spot prices might not fall sharply. Experts feel it
should trade in range of 170-180 (CNF) for Fe 63.5/63.
With China preparing for golden
week, starting from 1st Oct, buyers are unwilling to take any
position until market takes a clear direction. “The overall market sentiment is
still quite confusing due to uncertainties in the global economy. However, expectations
are there for a rebound in prices after the sharp falls”, said an iron ore
trader in Shanghai.
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