China: Spot Iron Ore Prices Drop by USD 2 on 17 September

• Spot Iron ore prices drop by USD 2
• Shanghai Steel Rebar drop by Yuan 4
• Autumn festival in China is affecting imports and demand for Iron ore
• Supreme Court's hearing on Iron ore mining ban in Goa

Seaborne Iron ore price is trading low amid of weak sentiments prevailed in the market. Spot Iron ore price drop by USD2. SteelMint assess that 63.5/63 grade Iron ore is at USD 131/MT CNF China on Tuesday.

China:

Iron ore prices dropped because of less trading done by Steel Mills and traders in China. Supply of Iron ore to ports in China are increasing but the demands are not increasing in line with Iron ore import. Traders in China analyzed the market closely which was expected to fall because of the imparity in demand and supply.

Drop in Shanghai Steel Rebar Future continues on 17 September to Yuan 3643 i.e. drop of Yuan 4. Rebar Future is trading at its six week low. This fall in prices is because of slow economy growth despite government investment.

Iron ore prices also decreased owing to upcoming National holiday in China, Iron ore booked on 17 September will reach China port in mid of holiday so demand is decreased for Iron ore. It is expected that demand for Iron ore might also increase before the National holidays in China i.e. (01-07 October 13). This increase in demand will be because of restocking done by mills because Chinese market will be closed between(01-07 October 13).

A tender of 110,000MT of MAC Fines was sold at USD 130/MT through Global ore. PB Fines at Tianjin port of 61% sold at RMB 930/MT. Australian PB Fines grade 61.5 stayed at USD 130 which is drop by USD 2.

Billet EXW price dropped by RMB 30 to RMB 3050.Since the beginning of September Billet price fall by RMB 130 that is down by 4%

India:

With Supreme Court's hearing on blanket ban on mining and exports of Iron ore in Goa, which had been imposed in the month of October 2012, Goa miners are hopeful that something will come in their favour soon. Most of them are eyeing on the liquidation of Iron ore inventories as the immediate step.

USD 1 = RMB 6.1571