Week 25 witnessed prices of finished steel in China plummeting, although the ore market was mysteriously silent in week 24, decline was on the cards.
Finished steel market in China has been passing through a harrowing phase with the prices plummeting as the monsoon catches up. Moreover the feared power cuts had come to pass and the production likely to be pruned in June and July the impetus to buy has vanished.
It is noteworthy that the iron ore stockpiles at Chinese ports touched a record breaking 93.53 million tonnes.
It is learnt that the pressure of stocks and anticipated buying slowdown is so predominant that Vale had to divert China bound iron ore laden Valemax carrying close to 400,000 tonnes to Italy recently.
The physical market is showing a deserted look with very few Sellers and buyers showing interest for transactions. Monsoon having broken early the ensuing logistics constraints are portending to catch up at the coasts. At the same time continuing ambiguity over dispatches from mines in Karnataka as permit issues are yet to be sorted out has kept the buyers and sellers at bay.
The momentum will pick up once the Chinese mills attain normal production and commence buying.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | -1% |
| Fe 63.5/62.5% | -1% |
| Fe 63/62% | -1% |
| Fe 62/61% | -1% |
| Fe 61/60% | -1% |
| Fe 60/59 % | -1% |
| Fe 59/58 % | -2% |
| Fe 58/57% | -2% |
| Fe 57/56 % | -2% |
| Fe 56/55% | -2% |
| Fe 55/54 % | -1% |
| Fe 54/ 53 % | 0% |
| Fe 53/52 % | 0% |
| Fe 52/51 % | 0% |
Change is on June 24th as compared to 17th June 2011
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