Chinese Iron ore market felt the pressure of weak steel demand that resulted in fall of Iron ore prices by USD 3/MT; touched seven month low record to 119/MT CNF China for Fe 63.5/63.
Buyers lost interest from purchasing spot Iron ore cargo. Seaborne Iron ore prices for Fe 55/54 are at USD 87/MT CNF and for Fe 63.5/63 at USD 119/MT CNF China. Australian 61.5 PB Fines prices are down by USD 3 to 118/MT CNF China.
This price level of 119/MT for fe 63.5/63 was last witnessed back in the first week of July, 2013. Traders expect that Iron ore will be traded around this level for coming few months. Banks in China has curbs lending for some steel mills after looking at the slow growth in housing sector.
Iron ore Stocks at all time high in Chinese port
Iron ore market is under pressure owing to stockpile at ports which reached all time high to about 100.9 MnT and rising steel stockpiles that’s up by 20% at large steel mills in China. Rising steel stockpiles decreases the steel production to 61.6 MnT in January i.e. down by 3.2% Y-o-Y.
India
Goa’s 2nd Iron ore e-auction on 5Mar, 2014 for 1.5 MnT ore in which 1.3 MnT are Fines and rest are Lumps. Goa’s 1st auction receives good response by the bidders; out of 536,000 MT Iron ore offered 535,000 MT was purchased by the bidders.
Export
Iron ore export to China from Haldia port on vessel name JIA Xiang Shan & Bonita is being loaded with total 40,000 MT Iron ore by Feegrade/Bonai.
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