The spot market was devoid of much activity last week reflecting dormancy in the domestic steel market in China.
The slow moving raw material has led to record pile up at ports touching 89 million tonnes.
The cumulative impact has been gravitational on the spot prices which have outstripped the futures with a yawning gap affecting the nearby contracts and forwards.
At the same time the steel production has remained bullish averaging above 1.9 million tonnes since January and 1.94 million tonnes in the first 10 days of May. The real impact of the power rationing will be felt only by the end of June. Hence the deluge of material will keep the chips down for the time barely leaving any scope for revival in ore prices immediately.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | -2% |
| Fe 63.5/62.5% | -2% |
| Fe 63/62% | -3% |
| Fe 62/61% | -2% |
| Fe 61/60% | -1% |
| Fe 60/59 % | -1% |
| Fe 59/58 % | -2% |
| Fe 58/57% | -2% |
| Fe 57/56 % | -2% |
| Fe 56/55% | -3% |
| Fe 55/54 % | -4% |
| Fe 54/ 53 % | -5% |
| Fe 53/52 % | -6% |
| Fe 52/51 % | -8% |
Change is on May 27th as compared to 20th May 2011
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