Spot iron ore prices drop further
to mark its biggest drop since August 2009 as thin demand from China forced traders
to sell even at a loss.
Offers for Indian Fe
63.5/63-grade fines fell by $2 to reach $148/MT and Australian 58-grade Yandi
fines dropped by $8 to reach $114-$116/MT.
“Traders who can't hold
positions because they don't have sufficient funding are selling at a loss of
$40-$45/MT,” said a Singapore-based iron ore trader.
There has been a lot of
distressed cargoes in the spot market, or shipments that traders needed to sell
because they don't have enough funds to hold them and wait for prices to
recover, the trader said.
“The situation is still very
bad. There are some mills which are starting to buy but they're only willing to
pay very low price, even lower than the current spot market rate,” said a
physical iron ore trader in Shanghai.
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