Iron ore in Chinese spot market plunged further by $2 on Tuesday morning with buyers unwilling to take positions at any levels.There were few offers from Vale (Brazilian miner) at low levels but failed to get any bids.
Iron ore traders cut offers by 10-20 yuan on stock piled at Rizhao and Qingdao port, but it was not enough to lure buyers.
Though some traders see prices will have limited fall at these levels and prices can re-bound on preferential policies announced by Chinese government.
“Chinese steel prices have corrected majorly and are trading at almost 2008 levels, steel mills have cut production on poor demand from US and Europe.If we sell iron ore at current levels, we will make huge losses.” said an iron ore trader based in Qingdao port.
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