Spot iron ore market looks bearish on falling steel prices
and cautious buying from Chinese steel mills.
Offers for Fe 63.5/63 of Indian fines remain at $186/MT i.e.
at the same level seen on Saturday.
September and October are normally strong consumption
periods for steel in China but Beijing's credit tightening campaign has hurt
demand and the boost from the government's cheap housing project is waning,
traders said.
The most-traded January rebar contract on the Shanghai
Futures Exchange fell by 2.4 percent to reach 4,621 yuan on hazy outlook for
demand and thinning appetite for the key raw material iron ore
However, Tight supplies from India, should keep losses in
iron ore prices in check.
“I don't think they'll collapse, but maybe prices will
range from the low $170s to low $180s,” said a Singapore-based trader.
Iron ore prices could rebound after China's National Day
holiday that falls during the first week of October. “With the current
uncertain situation, I don't expect mills to be buying ore, but after the
holiday there may be a rush to restock,” said another Shanghai-based
trader.
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