Iron ore prices drop as Chinese buyers keep away No deals done this week; rates down to $90-92/tonne

Print this page Posted on : 08-28-2009 by recycleinme.com

Prices have steadily fallen since their one-year peak early August at $115 on a sudden withdrawal of Chinese buying interest.

Reuters

Mumbai, Aug. 27

Iron ore prices fell further this week and deals were scarce, with traders eyeing looming steel inventories in China, exporters in India said on Thursday.

Daily fall

''The market is falling every day as steel prices are falling,'' said Mr M. Charan, director of Kineta Minerals and Metals Ltd, an exporter based in Andhra Pradesh. ''China will wait till it falls more.''

Mr Charan said he last sold iron ore on August 20 at $92 a tonne c&f, but had no deals this week.

In China, ores of Indian origin with 63.5 per cent iron content were quoted at $90-$92 a tonne c&f against $103-$105 a week ago, industry consultant Mysteel said.

Steel's fall

Prices have steadily fallen since their one-year peak early August at $115 on a sudden withdrawal of Chinese buying interest.

Steel prices in China, the world's biggest producer of the commodity, fell by 5 per cent in their second consecutive weekly fall on concerns that robust output growth and tightening liquidity may further boost inventory build-up.

Indian exporters are faced with rising supplies in the weeks ahead as the June to September monsoon draws to a close, which will bring iron ore fines exporters back to the market. Powdery iron ore fines mostly produced in western and southern India are not exported during the rains as they absorb moisture.

Exporters have said big miners would be eager to start exporting by mid-September as they need to shore up their incomes after a nearly four month break.

Volatile market

''Exporters are not giving any orders as they are saying the market is volatile,'' said a trader in the eastern state of Orissa who buys from mines and sells to large exporters.

''Nobody can predict what will happen next,'' the trader added.

Source : Business Line