* Mysteel offers fall $2/T
* Rebar futures slide to 2-month low
* Market concerned about more falls to come
By Ruby Lian and Tom Miles
SHANGHAI, Feb 24 (Reuters) - Spot iron ore prices fell for a third straight day on Thursday amid expectations that prices are likely to drop further due to thin trade and weak steel prices.Prices of Indian ore with 63.5 percent iron content selling to China stood at $193-195 per tonne, including freight, down $2 from Wednesday, industry consultancy Mysteel said."Some traders have stopped offering today as chances for dealmaking are slim, and preferred to keep and sell stocks until prices rebound," said an iron ore trader in eastern China's Rizhao city.Chinese steel mills remained reluctant to conclude deals as they were unable to pass on surging costs to end users facing falling steel prices and weak demand this week.
"Now many mills seem happy to run these down a bit, especially because of recent falls. Until the mills need to build up stocks again, they are likely to be happy to sit and wait on the sidelines," said Christopher Ellis, an analyst with Metal Bulletin Index.
And a few iron ore traders are expecting prices to fall to $175 per tonne in coming weeks if steel prices and demand fail to recover.
STEEL UNDER PRESSURE
Steel prices extended falls on Thursday, adding to concerns that steel mills would mark time in purchasing iron ore due to concerns about profitability.
"Relatively weak steel end user demand seems to have hit sentiment somewhat and this is causing some in the market to question whether the iron ore price has fundamental support at the high levels that we have seen," Ellis said.
The bechmark rebar contract for October delivery at the Shanghai Futures Exchange closed at 4,892 yuan per tonne, down 1 percent from the previous close and also hitting the lowest in nearly two months.
Swaps cleared by the Singapore Exchange were generally lower with the March contract slumping the largest $5.83 to 168.67 per tonne, dampened by concerns over prices and demand.
Three global iron ore indexes also tumbled on Wednesday.
The Steel Index's 62 percent iron ore benchmark slumped the biggest $3.4 to $184.9 per tonne, including freight, the lowest level since Jan. 19.
Platts' 62 percent iron ore index shed 75 cents again to $186.75 per tonne, and Metal Bulletin's 62 percent index fell $1.38 to $186.56 per tonne. ($1=6.574 Yuan) (Reporting by Ruby Lian and Tom Miles; Editing by Jacqueline Wong, sourced:Thomson Reuters)
"Now many mills seem happy to run these down a bit, especially because of recent falls. Until the mills need to build up stocks again, they are likely to be happy to sit and wait on the sidelines," said Christopher Ellis, an analyst with Metal Bulletin Index.
And a few iron ore traders are expecting prices to fall to $175 per tonne in coming weeks if steel prices and demand fail to recover.
STEEL UNDER PRESSURE
Steel prices extended falls on Thursday, adding to concerns that steel mills would mark time in purchasing iron ore due to concerns about profitability.
"Relatively weak steel end user demand seems to have hit sentiment somewhat and this is causing some in the market to question whether the iron ore price has fundamental support at the high levels that we have seen," Ellis said.
The bechmark rebar contract for October delivery at the Shanghai Futures Exchange closed at 4,892 yuan per tonne, down 1 percent from the previous close and also hitting the lowest in nearly two months.
Swaps cleared by the Singapore Exchange were generally lower with the March contract slumping the largest $5.83 to 168.67 per tonne, dampened by concerns over prices and demand.
Three global iron ore indexes also tumbled on Wednesday.
The Steel Index's 62 percent iron ore benchmark slumped the biggest $3.4 to $184.9 per tonne, including freight, the lowest level since Jan. 19.
Platts' 62 percent iron ore index shed 75 cents again to $186.75 per tonne, and Metal Bulletin's 62 percent index fell $1.38 to $186.56 per tonne. ($1=6.574 Yuan) (Reporting by Ruby Lian and Tom Miles; Editing by Jacqueline Wong, sourced:Thomson Reuters)
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