Spot iron ore prices remain steady on Wednesday as Chinese
steel mills continue to stay on the sidelines and steel prices fall despite the
traditional consumption peak season.
Offers for Fe 63.5/63 of Indian fines remained at
$187-188/MT. And, offers for Australian 62% Newman fines also remained firm at $182-184/MT
(CNF).
Shanghai rebar extended losses on Wednesday amid euro crisis
fears which have discouraged steel mills from buying large volumes of the raw
material.
Steelmakers in China have stepped away from imports and have
preferred to buy domestic ore to lower production costs after offers inched the
level of $190/MT last week.
“Spot prices have fallen below $190/MT this week and most
of the traders have faced huge pressure on credit and don't have sufficient
money to buy plentiful ore, so the overall buying pace is slow this year”, said an iron ore trader in Beijing.
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