Seaborne Iron ore price decreased by US $1 after remaining firm for last 3 days, Spot Iron ore price stands at $139 CFR China on Friday.
Demand for steel is not improving which affecting the sale of iron ore in China. Traders expecting this correction after increase of $2 on Monday, this price increase was not supported by the traders and steel industry and price corrected because of rare transaction.
Shanghai Steel rebar future week performance also affecting the market sentiments which trading at three week low on Thursday. This decline in prices may be because of war like situation in Syria.
Still mils and traders showing less interest for the purchase of Iron ore one reason could be the prices are too high other they have sufficient stocks for September.
China crude steel production is down by 1.2% in mid August due to less demand. Traders are waiting for demand to increase as forecasted for September.
Rupee downfall is encouraging miners to export Iron ore as demand is there from china. Government may also give some relief in export of Iron ore; this will help to reduce the current account deficit (CAD). India rupee improved by 66 Paisa stayed at 66.86 for 1 USD.
Iron ore miner Rio Tinto sold 165,000 tonnes of PB Fines at US $138.5. Iron ore trader at Shandong port sold Fe 62.5% Newman fines at RMB 955/tonne another trader sold Fe 57.5% yandi fines at RMB 840/tonne. Australian PB Fines grade 61.5 down by $1 at US $138.
Billet price unchanged stands at RMB 3150/tonne, after decrease of 10 RMB on Thursday.
US $1 = RMB 6.1790
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