Local sources in China report SteelMint that many mid sized steel mills which have long term contracts with Australian and Brazilian miners are deferring supplies as they have option of buying cheaper iron ore from spot market.
“There are many mid sized steel mills in China who are unwilling to take deliveries on long term contract prices as spot prices are much lower. Miners have no other option but to sell it off in spot market at a lower price.Buying is very weak as mills are waiting for some more correction before they could make purchases.”said a iron ore trader based in Rizhao port.
It looks we can see some stability in iron ore prices next week, he further added.
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