Prices of ex-Australia iron ore of 62 percent Fe content for delivery to China's Qingdao port, which had declined to $38.5-39.5/mt CFR on December 9, have moved sideways since last Friday, December 11. However, market sources still predict a downward trend for iron ore prices in the coming period.
Sam Walsh, CEO of Australian iron ore producer Rio Tinto, has this week stated that there are a lot of iron ore producers, which had been expected to leave the market, that are still continuing their operations at the expense of harming their shareholders' cash reserves.
Higher-cost iron ore producers have left the market due to the declines seen in iron ore prices and so the iron ore market has entered a reorganization period. Market sources state that, despite the rise in iron ore supply, with Chinese iron ore consumption falling the declines in iron ore prices are foreseen to continue.