August 06,
Though there have been fresh offers from Indian miners but business from Chinese Steel mills and traders have not been active.
Many Chinese traders and Steel mills have turned to source more Iron ore from domestic ports instead. This is the main reason for the decline in demand for low grade Iron ore fines.
A manager from a trading company in China pointed out that apart from rising Steel prices, the ban on iron ore exporting in India in late July has also affected the market supplies to a certain extent.
Most Steel mills have cut the import volume in July and accordingly the transactions have been sluggish.
It is expected that the spot prices of Iron ore would follow the trend of steel products, which, however did not materialize in recent markets. As a matter of fact, Iron ore prices would probably rise even if the domestic steel products fluctuated again and again.
Leave a Reply