China spot iron fines prices have fallen by USD 2.7/MT today (23rd
Mar’18) to USD 65/MT, CFR China against the previous closing of USD 67.7/MT, CFR China. It has declined by USD 3/MT D-o-D.
On last week iron ore was recorded USD 70/MT CFR China. In the past one week, it has been declined by USD 5/MT. On weekly basis, iron ore prices came down by 7% against USD 70/MT CFR China last week closing.
Spot iron ore prices have hit almost 4 months low as these levels were last seen around the 2nd week of Nov’17.
Factors behind steep decline in iron ore prices:
1. Futures slumped with risk aversion growing after the US President Donald Trump unveiled tariffs on up to USD 60 billion worth of Chinese imports.
2. A sharp decline in iron & steel futures – Iron ore futures in DCE today fell by 6%, coking coal by 4.4% and rebar futures declined by 7%.
3. Steel prices in China’s domestic and export market nosedive – HRC export offers from China have come down by USD 10-15/MT D-o-D. Offers heard around USD 585-590/MT, FoB.
4. Rising iron ore port stocks – High availability of material at major Chinese ports is affecting the iron ore prices, with mills bidding at lower prices. Iron ore inventories at Chinese major ports increased by 0.75% W-o-W to 160.38 MnT.
Several traders are expecting further decline price in the coming days as steel inventory continues to build.
5. Construction activity has not picked as much as expected. Demand is very weak. Mills and traders are in a wait-and-watch mode, looking for the price.
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