The weakness in China's steel
market has limited demand for iron ore, with traders slashing prices of
imported ore on Thursday. Offers from Brazil have dropped by $3/MT with Fe 65
being quoted at $148-150/MT. Whereas, offers for Indian fines Fe 63.5/63 stays
at $146/MT CFR.
“Steel demand is still very
low and the weakness could continue till the rest of this month. We are hoping
better weather from March which would lead to a restart of construction projects,”
said an iron ore trader in Shanghai.
Steel futures in China also fell to
a six-week low on Thursday as slow demand continued to drag down prices and
pull iron ore, steel's raw material, to its weakest level since late December.
The most-active May rebar
contract on the Shanghai Futures Exchange fell as low as 4,159 yuan ($660) a
tonne, a level not seen since Jan. 5. It stood at 4,173 yuan by the midday
break, down 0.4 percent.
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