Global iron ore prices retreats to USD 58/MT, CFR China on 09 Mar’16. Prices have fallen by around USD 4/MT, after registered highest ever single day gain of USD 11/MT on 07 Mar’16.
Global iron ore index had been dropped down by 6% upon fall in Chinese steel prices. On 07 Mar’16, Chinese domestic billet offers rose by USD 40-50/MT. However, on 08 Mar’16, Chinese billet prices were registered at RMB 2,140/MT (USD 329/MT) and today (09 Mar’16), prices were seen at RMB 1,910/MT (USD 293/MT). Chinese billet prices have registered a fall of USD 35/MT in a day time. In addition, Shanghai rebar prices also fall and was registered at USD 323/MT.
There were less trade seen in the market. Now, market participants are in a wait-and-watch situation to seen in which direction the market goes as currently global market is much volatile.
As per market sources in China, “Today(afternoon) iron ore spot price dropped by 60-70 Yuan/WMT, as trading was very very light. PB fines (61.5%) sold at 425 Yuan/WMT at Rizhao Port, which was equivalent to USD 56.89/DMT as import price (excluding import agency fee and interest cost). In a day, sentiment rapidly turned back, as fundamentals were unimproved. Hope tomorrow market would turn to stable”
In addition, market analysts also anticipates the sharp increase in iron ore prices above USD 60/MT in a day time is unsustainable, predicting that prices would bounce back to USD 40-45/MT in short term.
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