Thursday, 20 Oct 2011
It is reported that prices of iron ore, the main ingredient for making steel, could slide to as low as USD 140 per tonne in the coming months.
In September, spot iron ore prices grew above USD 181 per tonne but on Monday fell deeply to USD 157.25.
Analysts and mines experts said developments in China over its monetary policy have been affecting demand for iron ore, noting the commodity weakening prices could extend into the early part of this quarter.
Recently reports circulated that Brazil Vale was selling iron ore for fourth quarter contracts cheaply to the Chinese an indication that iron ore miners were giving in to Chinese pressure.
Reports said iron ore miners were selling to Chinese steel mills at USD 175 a tonne. But the Chinese were not buying because the fourth quarter contract rate was based on June to August average spot prices. Iron ore is currently less than USD 160 a tonne average. But miners said prices will likely recover coming into the New Year as Chinese steel consumption is expected to grow 7.5% this year.
(sourced from Gantdaily)
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