Spot iron ore market in China crashed on Tuesday with offers reaching 13-month lows and Shanghai rebar futures also went
down to reach a fresh contract low as Brazilian miners cut their contract prices.
Offers for Fe 63/63.5 of Indian
fines fell to reach $155/MT (CNF CHINA) on Tuesday i.e. down by $10/MT from
yesterday's quote. But buyers were not ready to buy at any levels. Whereas, a cargo of Australian PB fines equal to Fe 62 of Indian fines as heard being sold at $150/MT.
“The overall market is in
panic as small mills have started to shut down some blast furnaces, while big
ones are relying on their existing iron ore inventories and reduced
buying,” said an iron ore trader in the coastal city of Dalian.
The Shanghai January rebar
futures also hit a fresh contract low at 4,112 yuan ($645)/MT on Tuesday,
before ending 1 percent lower by the midday close.
According to the data from the
country's statistics bureau, China's crude steel production in September fell
to its lowest point in seven months i.e. down by 3.5 percent from August to reach
56.7 million tones.
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