Spot Iron ore extends loss on weak demand

Spot iron ore in China extended loss along with the Steel futures on
Wednesday as weaker demand put further pressure on the prices.

Offers for Fe 63.5/63 of India
fines reached $171/MT. Whereas, offers for Australian 62% Newman fines slipped
by $2/MT to reach $ 168-170/MT (CNF).

The most briskly traded January
rebar contract on the Shanghai Futures Exchange fell as low as 4,255 yuan a
tonne, the weakest level for the contract

Baoshan Iron and Steel, China's
biggest listed steelmaker, said it will keep prices of its main products
unchanged next month after raising them in September and October, reflecting
caution amid slower domestic appetite.

Prices of forward swaps also
extended losses, with the Singapore Exchange-cleared October contract down by $2.58
to reach $161.67/MT and November falling more than $4 to reach $154.17, as
buyers bet on a further decline in spot rates.