Sea borne Iron ore fines prices drop by USD 1/ MT this morning. China fines market is stuck between the low liquidity and poor performance of Steel market in winter, depicting a bearish trend.

Source reported, capital pressure was the major reason which kept Mills away from Iron ore purchases. The situation is critical for Mills, they are running out of cash. This problem of low cash flow is expected to recover only with the arrival of New Year.

Speculations rules the market

Looking to the bearish trend, the Mills there believe that the prices would fall further to USD 130/DMT, and resisting themselves to buy. They are waiting for further drop before they take any position.

Many of the mills there have maintained the marginal stock which will be enough for them to manage their productions in the month of December. And the rest are waiting to take position, believing on speculated prices which would be below USD 130/MT.

Spot prices for Fe 61.5 PB fines stayed at RMB 900/MT and foreign quotes were at about USD133/MT CFR China, fall by USD 1/MT. Indian fines Fe 63.5/63 was offered at USD135/MT CFR China.

The most active Fe 62 Iron ore contract for May delivery closed at about RMB 910/MT on Tuesday, slide by RMB 8/MT from previous-settlement.

Currently, square billet prices stand at around RMB 3,010/MT (EXW; VAT included)

Indian Traders hold their offers

The Indian traders are waiting to quote prices for their fines, as they don’t see good demand for the month of January.

Last shipment of Iron ore fines was traced from Paradip Port which was below Fe 60 grade, of M/S Bagadiya Brother, with the total quantity of 30,000 MT to China.

Trades wise

Cargo of Fe 58 Yandi fines was sold at USD120.7/MT via CBMX yesterday.

Vale’s tender for a ship of Fe 60.72 SFOG fines failed to find any buyer on Monday.

USD 1= RMB 6.1105