Iron ore market remains agog with hiccups recently. After a nearly 31% decline in October alone breeching the July 2010 levels, there was a reprieve with prices creeping little bit during last week. It had a direct bearing with the calm in Chinese domestic steel market inkling towards slight improvement for long products.
However as the week progressed rally seemed euphemistic with prices declining after the news of Greek bail out hitting a bump with the PM throwing a spanner by demanding a referendum. Revival of uncertainty nipped the revival in its bud.
Moreover it is learnt that as many Chinese mills having idled their BF’s the demand for iron ore is unlikely to pick up soon. In addition, the supply being significantly ameliorated with diversion of cargoes from Europe to China by the mining major’s prices will remain subdued.
Moreover the steel mills are not expected from the current decline in iron ore prices as most of the material consumed for the coming couple of months would have been bought higher price. Hence it will be only in New Year the mills would cheer up to some cost saving and improved profitability if the market looks up.
Hence the nascent rally would be history sooner rather than later.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | -18% |
| Fe 63.5/62.5% | -18% |
| Fe 63/62% | -18% |
| Fe 62/61% | -19% |
| Fe 61/60% | -20% |
| Fe 60/59 % | -21% |
| Fe 59/58 % | -22% |
| Fe 58/57% | -23% |
| Fe 57/56 % | -22% |
| Fe 56/55% | -23% |
| Fe 55/54 % | -25% |
| Fe 54/ 53 % | -27% |
| Fe 53/52 % | -30% |
| Fe 52/51 % | -34% |
| Fe 51/50% | -39% |
| Fe 50/49 % | -44% |
Change is on Nov 4th as compared to 28th Oct 2011
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