Spot iron ore market in China is
expected to fall this week too as most of the buyers have stepped back to wait
and watch.
Indian offers slipped to $150 for
Fe 63.5/63 (CNF) last week but no deal has been concluded. TSI index prices for
Iron ore also slipped down by $3.2 for Fe 62 to reach $142.6/MT
Iron ore has lost more than 15
percent so far in October i.e. its biggest monthly decline since May 2010, as
slower steel demand in China curbed output and appetite for the steelmaking
ingredient.
“It's a tough market. I see
prices going down further. There are inquiries from Chinese mills but they want
lower prices,” said an iron ore trader in Shanghai.
Rio Tinto , the world's No. 2
iron ore producer, said on Monday that while demand remained robust, the recent
fall in prices was accelerating a move to shorter pricing methods.
Top iron ore miner Vale also said
last week it was open to discussing different pricing arrangements with its
clients following the slide in spot prices.
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