Lesser buying activities by Chinese steelmakers pulled down
spot iron ore prices marginally but strong fundamentals may limit any sharp falls
ahead as the country still expects to post annual record steel output.
Offers for Indian iron ore fines Fe 63/63.5 percent stood at
around $187-188/MT including freight, i.e. down by $1-2/MT from the previous
quotes.
Steel mills and iron ore traders in China have become
increasingly cautious about purchases amid the rapid rise of the key
steelmaking ingredient price since mid-August.
A few cargoes from Australian miners were also traded at
lower prices late this week, with a cargo for 63-pecent Fe fines sealed at
$184/MT i.e. down slightly from earlier this week.
“Several tenders were priced lower compared with the
beginning of this week, pulling down the spot market, as steel mills are
hesitant to buy more when offers hit $190 per tonne,” said a iron ore
trader in Beijing.
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