Monday, April 18,
Spot prices of iron ore fell further by $2/MT on weaker demand from Chinese buyers. Uncertain outlook for steel demand in China kept steelmakers hesitant for buying more of the raw material.*
Fe 63.5 Indian cargo is being quoted at $186/MT on CNF basis, down from as much as $190 last week.
Most of the Chinese steel mills had restocked iron ore ahead of an expected pickup in construction activity in the current quarter, but steel demand had so far been slow, prompting steelmakers to cut prices for May.
According to traders based in China, “Since last week, purchases are dropping. Most of the mills have already bought a lot for stocks so they can wait for prices to drop before they buy again.”
Moreover, China’s latest bank reserve hike on Sunday is expected to further tighten credit for steel producers and curb their capacity to buy raw materials, they added.
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