Traders in the Chinese iron ore market say that demand for Indian iron ore has reduced over the past three weeks.
At present, 63.5% Indian fine ore price in China's major ports was 66-67 dollars per dry ton (CFR), almost the same as that of the first two weeks in March. However, because domestic buyers are holding a watch-and-see attitude towards the market, there have been few transactions.
Prices have fallen almost 20pc, compared with 85 dollars per dry ton CFR last month.
Generally speaking, if the price was stable, the volume of transactions would gradually increase, but this month that situation has not been the case, and a major northern iron ore trader said on 20 March "Some buyers thought that the Indan ore prices had touched bottom last week, so they ordered some ore, but this week someone would not think so, and they held watch-and-see attitudes to the market."
Because of previous rumours that the number of Chinese steel mills will be further reduced, traders even think there will be no transactions in the coming months. Another Shanghai trader said, "I am worried that the situation of a slumping market would continue for quite a long time."
Source: Alibaba News Channel
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