During last week, global iron ore prices hit more than two years high at USD 80/MT due to US presidential elections and speculative trading. But now, as the government is taking measure to wave off the speculative trading, iron ore prices plunged by USD 7/MT in 2 days.
Currently, prices for Fe 62% Australian fines are assessed at USD 73/MT, CFR China on 15 Nov’16.
It should be noted that in China, many commodities prices like coking coal, iron ore, steel went down as speculators cashed out of future markets. Iron ore prices moved down by 6% in 2 days. With a cap trading limit, it has reduced the market liquidity and raised the price fall.
Chinese ferrous as well as iron ore futures retreated after a strong gain. Shanghai Future Exchange for January rebar contract is assessed at Yuan 2,879 (USD 422), down by Yuan 67 (USD 10). On the other hand Dalian Commodity Exchange for January iron ore contract is assessed at Yuan 601 (USD 88), down by Yuan 19 (USD 3) today.
However, it is believed that iron ore prices may not plunge below USD 50-55/MT as it is elevated amid tight Chinese coal supply that has increased buying of high grade iron ore.
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