Thursday, June 02,
Weak demand for steel in China is weighing on the iron ore prices. Indian exporters quote Fe 63.5/63 at $175-$176/MT (CNF CHINA) on Thursday.
Chinese rebar steel futures also edged lower on Thursday putting downward pressure on iron ore prices already trading at more than two-month lows.
The most active October rebar contract on the Shanghai Futures Exchange dropped by 0.5 % to reach 4,844 yuan/MT after earlier hitting a near one-week low of 4,839 yuan.
“Steel mills continue to face difficulty in getting loans with the tight credit environment and purchase orders for steel products are not that much,” said an iron ore trader in China’s eastern Shandong province.
“The market’s blurred at the moment. Many people believe prices have room to go down further, but personally, I think the current level at $175-$178 is acceptable for steel mills. I think we’re at the bottom,” said another Chinese trader.
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