Spot offers for Iron ore drop by $1-2/MT

Spot offers for Iron ore dropped by $1-2/MT on Tuesday as
steel mills in China prefer to wait and watch.

Indian exporters offer Fe 63.5/63 at $ 186-187/MT i.e. down
by $1-2/MT from the previous quotes.  Offers
for Australian 62% Newman fines also slipped down to reach $182-184/MT from the
previous offers of $183-$185/MT (CNF).

In spite of a fall in spot offers, Indian exporters cheer
about one thing i.e. the Rupee appreciating against the Dollar. The value of $1
has reached the level of Rs 47.16 from the level of Rs 45.93 in the beginning
of September. So, the appreciation in Rupees gives exporters a chance to earn
Rs 300-400/MT extra on any deal.

Comment by:

Traders: “We
don't expect steel production to fall from here. But steel mills are a bit
cautious in purchasing iron ore and prefer to wait and see. Spot offers have
dropped by $1-2/MT but it may not correct sharply as supply from India, one of
the major suppliers still remains tight”