Spot iron ore prices in Chinese market reported to have dropped by another $3-4 per tonne.Over supply by Australian miners in spot market and falling steel prices in China have weighed on over all iron ore market. Though some experts see prices are nearing bottom and might find support some were in range of $80-85/t for 62% Fe.
“Problem in over production and over supply of sea borne iron ore, both have resulted in fall in prices.Steel makers in China are working on very thin margin.Many of them will certainly cut production in near term.We see spot iron ore prices should find support at $80 level.Vale has heard to sold 63+ Fe sinter fines at around $91/t CFR.
Indian offers are very rare in the market reason being that most of exporters have reduced movement on ports looking at weak demand and high freight costs.Stock levels on Paradip and Vizag port has drastically reduced in last one month reported industry sources.
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