Watershed can never stop shedding in iron ore market with the finished prices in a downward spiral declining over USD 9 per tonne in the last two days the CFR levels for Fe 63.5/63% touched USD 100 per tonne.

The Rebar futures market was dipped 3% plus across the board as demand for the finished product news continued to disappoint.

Most of the mills are having at least 15 days stock unlikely to ignite craving for buying when stockpile at port is nearly 100 million ton. Crude steel production dipping marginally to 1.93 million tones in 10-20th August from 1.97 million tones per day in the first 10 days will decelerate consumption of iron ore.

However an eerie sense of fundamentals realigning for bottoming out seems to be taking place and post National Holidays (1-7th October) might give cheers.

Source - Strategic Research Institute

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