Spot iron ore market in China have almost shed $ 17-18 in last one month on global economic crisis, over production and improved supply from Brazil and Australia.Industry experts feel that there is some scope of correction from these levels and then prices should stabilize.
“We see 62% Fe at around 110-115 levels, chances are less that prices will fall below that. Mining majors can not incur losses for a long time, prices have to stabilize. More over, some production cut have given relief to the steel prices in China (which have reduced falling).” said a market analyst based in Shanghai.
Indian exporters stay away from the market as current spot prices are much lower than there costs. There are no offers heard at these prices and chances are less that big miners will sell at such low levels, reported sources.
Leave a Reply