Thursday, June 30,
Bleak steel demand in China is weighing on the spot iron ore prices which fell to their lowest in more than three months on Wednesday and are also bound for a second consecutive month of losses.
Offers for Fe 63.5/63 of Indian cargo lie at $175/MT i.e. back to the quotes seen in mid-March.
The most-active October rebar contract on the Shanghai Futures Exchange rose 27 yuan to close at 4,753 yuan a tonne. Despite the gain, Shanghai rebar fell 2.5 percent for all of June, more than three times its losses in May.
“It’s a modest rebound, there’s nothing much else to it. Actual physical trading of steel and iron ore remains thin,” said a Shanghai-based trader.
“The prices are more or less within market expectations. We believe prices will continue to fall in a slow pace because of weak Chinese demand,” said an iron ore trader in Beijing.
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