Newton's law of gravity states that “what goes up, comes down” is proving right in case of spot iron ore prices in Chinese market. Prices which shot up over 40% in last one month has started showing signs of correction.
Buyers have started disappearing from the market despite high hopes of early recovery in Chinese economy and rising steel prices in Chinese market. Sources tell that there are quite a few Brazilian and Australian cargoes lined up, but unable to get any aggressive buying interest.
In line, Indian exporters have also started cutting their offers. Chinese traders mention that Indian offers are low by as much as $7-8 per tonne from Monday. 63 Fe cargo is being offered in the range of $149-150/t CFR China but deal was not heard to be concluded.
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