India Steel Market Watch
November 5: Spot iron ore prices to China edged lower with no near-term recovery seen in steel demand in this country.
Offers dropped to a record low as demand in China fell due to a slowing economy, with the approaching winter expected to keep appetite weak, industry sources said.
China's steel demand dropped 5.8% in January-September, according to the China Iron and Steel Association (CISA).
Amid weakening demand from the world's top steel consumer, China's crude steel output is expected to fall to 780 million tons by 2020, CISA said. Output last year reached 822.7 million tons.
"We believe the recovery in steel prices holds the key to any recovery in iron ore prices," ANZ Bank wrote to clients.
Iron ore for immediate delivery to China's Tianjin Port stood at $49 a ton.
Rio Tinto, the world's No. 2 iron ore miner after Vale, said it expects to see strong growth in iron ore demand in countries outside China as the global seaborne market expands.
Following are prevailing iron ore prices in international markets:
Grade % Fe |
Origin |
Product |
load port |
destination |
Nov 5, 2015: cfr ($/ton) |
Nov 4, 2015: cfr ($/ton) |
Nov 3, 2015: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
49 |
49 |
49 |
62 |
India |
Fines |
FOB Vizag |
|
17 |
17 |
17 |
62 |
Australia |
PB |
Dampier |
Tianjin |
49 |
49 |
49 |
63.5 |
Brazil |
Fines |
Brazil |
China |
51 |
51 |
51 |
Source: Traders