Iron ore market  starts with a fee-ble opening , market witnessed a sharp decline of USD 2/MT on Monday. Prices of Seaborne Iron ore remain unchanged this morning. Ample of causes could be blamed for this down fall in prices of Iron ore.

• Pollution control dents the Iron ore market in China
• Fear of Power cut
• Low liquidity at the year-end
• Poor  demands in Winter
• Abundant  Supply of Iron ore, also a reason for the down fall

The efforts made by government to fight against pollution is becoming the key reason for the poor demand in Iron ore  There is a great pressure on mills to reduce their output, to have a contol over pollution. And this is resulting into low buying interest of Iron ore.

Mills in Handan and Wu’ans were ordered to cease production for 15 days until December 25. Tangshan and other northern region have the same fear that they would also have to suffer from the problem of power cut as these cities faced, and have to stop their production.

The mills are already using their cash for buying the Iron ore very cautiously,owing to shortage in their cash flows. And the major reason that makes them resistive in procuring is, the poor demand of steel during winters, as very low construction activities takes place during this period.

Awareness of Iron ore’s ample availability of Iron ore in Spot market has relaxed the buyers regarding the procument. Low grade as well as meduim grades cargoes are being available in large quantities.

Currently, spot prices for Fe 61.5 PB fines stood at RMB 900/MT fell by RMB10/MT

Foreign quotes for Fe 61.5 PB fines slide by USD 2/DMT to USD134/DMT CFR China on Monday, But witnessed no change in Prices today.  Same with Indian Fe 63.5/63 fines, which stands at USD 136/ DMT CFR China.

The most active Fe 62 Iron ore contract for May delivery closed at RMB918/DMT, up by RMB 6/DMT from previous close.
The billet market  corrected by RMB 10/MT from last close and stand at RMB 3,010/MT. The most traded rebar contract for May delivery opens at RMB 3675/MT, up by RMB 4/MT from yesterday’s close

Indian Iron ore market ( particularly Odisha) remain unchanged. According to the miners , they are suffering shortage in raw materials, due to which they could not produce and fullfill the demands.

USD1= RMB 6.1108