Spot Iron ore prices in China ranged from $156-157/Mt for 63.5 Fe cargo, but there were handful deals concluded according to the market participants.
“Demand for iron ore remains weak on account of power cut and sluggish demand for steel. But prices of iron ore are steady for last two weeks as supplies of Indian iron ore remains tight.” Said a local trader based in Shanghai.
Iron ore prices were likely to slip further on Friday on thinner Chinese buying interest but should not be far off current levels on firmer steel prices and tighter supplies of higher-grade ore.
The index, based on spot prices in China, has fallen just 2 percent over the past two weeks after touching near five-month highs in early October.
Analysts and traders say continuing steel production cuts in other parts of China has had little impact on the outlook for iron ore demand due to expectations other steel mills may not be through with building stocks ahead of winter, suggesting ore prices may still recover.
Tighter supplies of Indian ore with iron content of more than 60 percent have also kept prices of the raw material resilient; along with firmer rebar futures in Shanghai.
Steelmakers across the world have said soft demand will continue through the end of 2010 as government stimulus measures fade with both companies and consumers still hesitant to boost spending given mixed signals on the state of the global economy.
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