Spot iron ore prices in China tumbled today by USD 3/MT D-o-D owing to decline in spot billet and steel prices.
Fe 62% fines index was today assesed at USD 61.5/MT, CFR China against yesterday’s close of USD 64.6/MT, CFR China.
Steel mills kept themselves away from buying iron ore cargoes. Weak sentiments continued to prevail in China’s domestic market, with domestic billet prices hitting five-month’s low.
Domestic HRC prices in China nosedived to six-month low amid prevailing bearish sentiments and decline in steel futures. On similar lines, spot rebar prices also noticed downfall today.
Indian iron ore exporters remain silent as demand weakens further – Demand for Indian iron ore is quite bleak. There are not many buyers for low grade ore in China. Offers are hovering at USD 31-32/DMT, CFR China and around USD 20-21/DMT, FoB India for Fe 57% fines.
Presently Indian iron ore attracts a discount of 40-41%.
Indian merchant exporters are not taking fresh positions in domestic market. If situation persists for some more time, miners will either cut down their production or cut prices to entice local manufacturers.
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