Seaborne Iron ore prices in China observed a sharp fall on Tuesday amid falling Rebar and Billet prices in the domestic market. Imported Iron ore prices fell to USD 66/MT, CIF China for Fe 62% fines.
Chinese importers highlighted, “Markets are quite bearish at the moment. Despite falling Iron ore inventory at ports, prices are falling. Markets are speculating that Chinese government may lift export rebate on boron added steel, which will hit steelmakers’ margin.”
Another Chinese trader mentioned that most of us thought that lowering inventory at ports may give temporary support to Iron ore prices, but steel mills are not financially sound at the moment. If situation remains like this, we can expect Iron ore prices may correct further.
Indian Steelmakers to Benefit
Indian steelmakers, who are struggling with domestic supplies, will certainly benefit from falling prices in the global market. Indian Iron ore imports have crossed 6.8 MnT from Apr-Nov’14 and expected to touch 11-12 MnT during this financial year.
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