Spot iron ore prices in Chinese market corrected further by USD 1-1.5/MT on Tuesday, as market fears over supply of Iron ore.Fe 62% Iron ore fines index prices sank to USD 51/MT CIF China, falling to a level of 2004-2005.
Market fears Iron ore prices will fall below USD 50/MT owing to increasing supply in global market and stagnant demand from Chinese steel mills.
“Iron ore prices had to fall looking at growing supplies from global miners, but we did not expect it to fall so low. There is further scope of correction.” said a trader based in Rizhao, China.
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