Wednesday, June 29,
Spot iron ore prices remain at three-month lows. Quotes for Indian ore with 63.5/63 percent iron content are unchanged at $175-$177/MT (CNF CHINA)
According to traders in China, global miners like BHP Billiton and Rio Tinto are selling more cargoes on the spot market with Chinese steel mills opting to buy at spot rates as the material is cheaper than on long-term contracts.
Exports of iron ore from Orissa’s Paradip Port in eastern India fell by 13.6 percent in the first quarter of 2011 ending in June due to stringent rules imposed by the local government and a four-fold increase in the export tax, an official said on Tuesday.
“Steel mills are waiting for the market to hit bottom. Many of them only have 20 days inventory of iron ore. They want to increase it to 30 to 45 days, but money is a big problem for them because of the tight monetary policy,” said an iron ore trader in China’s eastern Shandong province.
Prices in iron ore forward swaps market extended losses on Tuesday reflecting investor expectations of further decline in spot prices.
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