Sea borne Iron ore prices have come down by USD 3. Bearish sentiments prevail in the market. SteelMint assessed that 63.5/63 grade Iron ore on 06.09.13 traded at USD 135 CNF China.
China
Decrease in prices of Iron ore is due to excess supply of Iron ore to China. There is demand for Iron ore but because of imparity in demand and supply traders are getting too much offers which is bringing the prices down.
Market sentiments are weak as the iron ore prices are going down. Traders in China are expecting more correction in prices due to increase in import of Iron ore. Traders are in no hurry to book their orders as they have sufficient stocks for September2013.
Shanghai Steel's Rebar future trading low as it closed at 3723 Yuan/MT which is the lowest since mid of August'13. This downfall is due to sudden decrease in prices of Iron ore.
Iron ore miners Rio Tinto sold 165,000MT of Iron ore of grade Fe 61% at USD 135.49/MT and Fe 60% at USD 124. Australian PB Fines down at USD 133.
An Iron ore's trader at Shandong port sold Fe 62.5% Newman fines at RMB 950/MT. Another trader sold 61% MAC Fine at RMB 930/MT.
Billet EXW prices declined by RMB 20 to RMB 3110
INDIA
Iron ore prices increased by INR 200-300 in September 2013. This increase in price is due to increase in demand from sponge iron industries and also because less production of Iron ore by miners due to rainy season.
Iron ore exports are increasing from India as Rupee is depreciating against Dollar. Miners are using both rails and roads for the transport besides deferential freight charges by railways.
USD 1= RMB 6.1728
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