Iron Ore Sinks on Back of Falling Chinese Steel Prices

Mining Weekly reported that falling steel prices in China have brought iron ore prices down to their lowest level since July. Overall, spot iron ore has sunk almost 11 percent in 2014.

As quoted in the market news:

Iron-ore for immediate delivery to China slid 2% to $119.90/t on Monday, its lowest since July 2, according to data provider Steel Index.

Weaker steel prices, lending curbs, plentiful supply of iron-ore in the spot market and huge stockpiles at home have combined to drag down prices, said an iron-ore trader in China’s eastern Shandong province who sees the price falling further to either $115 or $110.

‘Before, when we offer cargoes at 800 yuan per tonne, buyers ask for a discount of 10-15 yuan. Now that’s become 30-40 yuan,’ he said, adding his company has held onto 300 000 t in inventory for two months now amid a scarcity of good offers from buyers.

‘It’s a tragedy for traders like us.’

Click here to read the full Mining Weekly report.