Week opened with a tickle of pessimism in the iron ore market. The physical Iron ore indices saw downside adjustment for the first time this month. Spot iron ore prices for Fe63.5/63% touching USD 152 per tonne, CFR at the end of last week against all odds peaking seems in the vicinity.

It should be noted that the domestic mills are still operating at curtailed production capacity. The daily production of crude steel maintaining downtrend a dip of 3.85% in the first 10 days of November at 1.76 million tonnes per day compared to October at 1.66 million tonnes.

At the same time the buying fervor amongst mills which was kindled by rock bottom prices towards October end is fizzling away as the prices advantage has vanished with 12. % appreciation in prices ever since.

Not the least with the approaching winters and burgeoning stockpile of nearly 100 million tonnes weighs heavily on any sustainable price escalation. Futures have been dampened by an article from Marius Kloppers the chief of BHP forecasting a potential decrease in demand in Q1.

To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Barbil and FOB spot prices subscribe to “Iron Ore Services” of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com along with your full contact details.

The accuracy and the speed of reporting changes is well appreciated by not only Indian miners, but by global iron ore majors as well as Chinese mills as many of them have subscribed to this service to maintain another but solid listening post as far as Indian spot market is concerned.

(Sourced from www.steelprices-india.com)