Iron Ore Price

Iron ore price levels collapse with dwindling demand from Chinese mills

Chinese iron ore market seems set for low phase with heavy hand of Chinese government falling over the steel production and ensuing demand of iron ore from the mills. A recent notice from municipal government to cut down power consumption by 50% from the average level in the first ten months of this year during December has plummeted buying by the mills.

Iron ore inventory at 43 Chinese ports stood at 84.45 million tonnes as of December 13th down 0.95 million tonnes from December 06.

Given current steelmaking activities in China, we estimate port inventories are of 25.89 days of consumption, down 0.3 day from December 06.

In view of the healthy inventory levels and subdued buying price level are likely to remain low in coming week.

Grade Change %
Fe 63.5/63% -3.10%
Fe 60/59 % -3.30%
Fe 56/55% -3.90%
Fe 52/51 % -4.70%

Change is on 16th December 13 as compared to 13th December 13

Source - Strategic Research Institute

(www.steelguru.com)

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