Spot iron ore prices remain unchanged on Wednesday morning, with very thin buying interest. Falling steel prices and high inventory have weighed on iron ore prices. Chinese steel mills are unwilling to take fresh position at the moment.
” Chinese steel industry is under a crisis of over inventory levels and weak buying sentiments. Falling steel prices have kept iron ore demand low. But still traders believe that spot 63.5/63 should not fall below $140/t levels (currently offered at $146/t) on limited supply.” said a Chinese importer based in Beijing.
There are no current deals in the market, though an Indian exporter sold 63.5/63 Fe cargo of 40,000 MT from Vizag port at $129-130/t FOB.
There is some good news for Indian exporters as Orissa mining authorities have allowed to carry iron ore to various Indian ports through trucks.
Truck rentals are cheaper than what Indian railway charge for exports of iron ore.
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