Iron ore (Australian fines) has been agreed last week at US$127/t for Q4 (Oct-Dec) vs. US$147/t for Q3, following price cuts in hard coking coal (US$225/t FOB -> US$209/t) and LV-PCI price (US$180/t FOB -> US$147/t). This implies steel making cost to fall by cUS$45-47/t if Q4 contract raw materials are used..
More over Brazilian miners have also announced a price cut on iron ore by $15/mt for their oct contracts. Demand in China has been sluggish for past few months.
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