Reuters reported that spot iron ore slipped on Tuesday as lower steel prices in top market China discouraged steel mills from buying more of the raw material after some replenished stockpiles last week.

Slow Chinese steel demand and uncertainty over when it will pick up significantly have forced producers to limit iron ore purchases, trapping prices in narrow ranges below USD 120 a tonne and clouding prospects for the raw material to rebound to this year's highs.

According to Beijing based consultancy Umetal, price offers for iron ore cargoes in China from top exporter Australia fell by a dollar per tonne on Tuesday.

A further price drop in spot transactions should push down the benchmark 62% grade iron ore. The price fell 1.3% to USD 113 a tonne on Monday, based on data from information provider Steel Index.

Despite recovering from last month's three-year low below USD 87, the price is still about a quarter below this year's high of USD 149.40.

Source - Reuters

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