Spot iron ore prices in Chinese market shed another $1-2 (10 Chinese yuan) despite Chinese steel production kept high.
An Australian cargo of PB fines (61.5 Fe) was concluded at $97/t CFR. Market traders report that increased supply from Australian and Brazilian miners have put pressure on spot prices.
“Chinese steel association has indicated increase in crude steel production in the month of August.We expect further correction in sea borne iron re prices in short term.Chinese mills are buying in small quantities just to keep their production intact.We do not see raw material prices to rebound until there is substantial improvement in steel demand, which might take time.” said a Chinese importer based in Shanghai.
Indian exporter heard to have offered 63/62 at around $101-103,CFR but no deals concluded.
“International iron ore prices are so low that it makes sense to supply to domestic pellet plants in India.Realization is much better.We have also noticed big miners in Odisha have cut productions and also reduced stocking at ports.” said an Indian exporter based in Mumbai.
Leave a Reply