The weakness in steel prices has thinned appetite for iron
ore, the key steelmaking ingredient, with prices reaming at the same level.
Spot offers for Iron ore is retained at $185-187/MT for
Indian fines.
“There's huge supply but demand is declining. It's not
a good picture at the moment,” said Henry Liu, regional head of commodity
research at Mirae Asset Securities in Hong Kong.
The most-active January rebar contract on the Shanghai
Futures Exchange dropped half a percent to 4,600 yuan/MT by the midday break,
after falling to as low as 4,585 yuan, its weakest since Aug. 9.
“I think we are seeing a bit of consolidation in the
prices. The fall in the iron ore spot price is short term in nature. In the
medium term, prices will remain strong,” said an Analyst, citing firm
Chinese demand and tight supplies from No. 3 exporter India.
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