India Steel Market Watch
November 12: Spot iron ore prices fell after being pressured by shrinking demand in China that has dented appetite, industry sources said.
With falling prices seen forcing more Chinese steel mills to either cut output or close down, demand from the biggest iron ore buyer is at risk, keeping ore prices lower for longer as top suppliers fight for more market share.
Construction-used rebar for May delivery on the Shanghai Futures Exchange was down 1.2 percent at 1,763 yuan ($277) a ton.
A global glut has dragged spot prices to below $45 a ton this year, less than a quarter of the record highs seen in 2011, forcing many high-cost producers out of the market.
The outlook for iron ore prices remains bearish, analysts said, citing rising port inventories in China and profit margins of Chinese steel mills near a record low amid poor demand.
Benchmark 62-percent grade iron ore for immediate delivery to China's Tianjin Port stood at $48 a ton.
In Brazil, the government said, it may fine mining giants BHP Billiton Ltd and Vale SA for the "environmental catastrophe" caused by ruptured dams at an iron ore mine jointly owned by the companies in a south-eastern state.
Following are international iron ore offers:
Grade % Fe |
Origin |
Product |
load port |
destination |
Nov 12, 2015: cfr ($/ton) |
Nov 11, 2015: cfr ($/ton) |
Nov 9, 2015: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
48 |
48 |
48 |
62 |
India |
Fines |
FOB Vizag |
|
16 |
16 |
16 |
62 |
Australia |
PB |
Dampier |
Tianjin |
48 |
48 |
48 |
63.5 |
Brazil |
Fines |
Brazil |
China |
50 |
50 |
50 |
Source: Traders