Monday, May 30,
Spot iron ore prices drop by $1-2/MT. Prices might slip further this week if demand for Steel in China continues to be lean.
Global miners like Vale and Rio Tinto are also likely to keep their third-quarter contract prices largely steady after a record 20% jump in second-quarter rates.
“I don’t think we will see a big move in contract prices for the fourth quarter as well with average prices likely staying between $170 and $180. They could even drop,” said a Shanghai-based iron ore trader.
Indian Exporters quote Fe 63.5/63 at $177-$179/MT (CNF China) i.e. unchanged from Friday.
Stockpiles of imported iron ore at major Chinese ports last week rose by more than 10 % to a record 92.45 million tonnes suggesting that many steel mills now prefer domestic iron ore over the imported ones.
“The small and medium-sized mills have probably increased their use of domestic ore to 60-70 percent from 30-40 percent because it’s cheaper and they have the flexibility to do this given the design of their furnaces which can use any kind of ore”, said a trader in Beijing.
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