Spot iron ore prices in Chinese market shed another $3-4/t on low buying interest from steelmakers in China.Sources report that many Chinese buyers are defaulting on long term supplies from Australian and Brazilian miners which has resulted in more and more cargoes to be sold in spot market.
“There are many buyers who are now refusing to accept cargoes which have been on long term contracts.These cargoes are sold in spot market.Recently a Brazilian cargo of 63.5 Fe heard to be sold at around $99-100/t,CFR.Big steel players like Bao Steel do not see and immediate recovery in steel prices and anticipate iron ore and coal prices to trade low till end of this year.” said Mr Hudson from China.
Indian exports have dried out and experts feel volumes can fall much below than 40 Mn this fiscal.In context to falling exports India, steel minister commented that this will increase supply of iron ore fines and will help more and more pellet plants to come up in India.
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