Sunday, February 27, 2011

China: spot iron ore prices continue falling

Spot iron ore prices to China fell for a fourth-straight session on Friday to a level last seen in late January, on concerns over slowing demand with steel mills expecting further declines.
Indian ore with 63.5 percent iron content was quoted in China at $190-192 per tonne including freight on Friday, versus $191-$193 on Thursday, according to IronOreTeam website.
"The overall market is still under a bearish atmosphere. It is still too early to say when a turning point will come," said an iron ore trader in Shandong province.
Iron ore hit $200 per tonne in mid-February, the highest level since February 2008, but a lull in trading as steel mills held back on purchases has dragged down prices by almost 5 percent.
A few deals were concluded at below $190 per tonne including freight this week, as buying from top consumer China continued to wind down.
"I have not heard of China buying from many days, and even enquiries are less. I had no enquiries since 15-20 days, the last deal was done in the first week of January," said Somshri Patnaik, partner at PM Minerals, an iron ore trader in the eastern Indian state of Orissa.
Three global iron ore indexes also fell on Thursday, touching a more than one-month low, as the whole metals complex was saddled by worries that rallying oil prices due to the unrest in North Africa and Middle East will limit global growth.

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