Spot iron ore market remained pessimistic on falling steel prices in China and increased supply from Australia and Brazil. Industry experts feel that sea borne iron ore prices have further scope of correction up to $4-5.
“Billet prices continued to remain weak. Steel mills are reluctant to take positions at these levels.With improved supply from Brazil have kept sentiments weak. Brazilian cargoes which have to be tendered today are expected to trade few dollars lower.” said an iron ore trader based in Shanghai.
Indian exporters have nothing to cheer about despite dollar trading at 54.7 against dollar.
“There is absolutely no buying in the market, exporters are just lifting what they have booked earlier. There is a sense of uncertainty and nobody wants to take position. Though supply from India will remain critical specially after Goa will be closed shortly due to monsoon season.” said an Iron ore exporter based in Goa.
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