Spot iron ore prices fell by $5-6/MT by the end of the week
as buying interest slowed down because of increased stockpiles and low steel
demand. However, there was one thing that brought some cheer for exporters of
Iron ore i.e. China government raising mining tax on Iron ore by 20%, a move
that could curb the output of local producers and make imports more attractive.
Highlights of the week:
* Quotes for Fe 63.5/63 of Indian fines reached $143-144/MT
by the end of week i.e. down by $4-5/MT from the previous week. Australian 63%
Newman fines also slipped by $6 to reach $139-$141/MT (CNF)
* Inventories at 30 Chinese ports totaled 100.21 million
tons last week, about 32 percent more than a year earlier, according to data
from Mysteel.com.
* Shanghai Rebar steel futures fell on Friday and posted
their steepest weekly loss in nearly four months as steel demand eased in China.
The most-traded
May rebar contract on the Shanghai Futures Exchange slipped to a session
low of 4,148 yuan ($660)/MT, a level not seen since Jan. 5, before closing at
4,157 yuan i.e. down 0.3 percent.
Comment by:
Indian Exporters: “Chinese
traders usually like to buy commodities in essentially significant volumes when
the price is low but
this time they are said to be waiting for a further correction in prices given by bleak
demand for steel. They are waiting for a sign. If physical demand for steel comes
back then they will buy iron ore”
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