Iron ore spot prices have dropped on Wednesday, October 16, due to futures fall, subdued buying and outlook for reduction of consumption till the end of the month. Prices for iron ore fines with 62 percent of Fe content have lost $5/mt over the day, coming to $87/mt CFR. The lower price level has been seen in the market last time on September 3. Brazilian fines with 65 percent of Fe have fell by $4.7/mt to $93.8/mt CFR.
Only one deal has been registered at trading platform COREX for Yandi fines with 57.1 percent of Fe content at November index minus $2.3/mt.
Iron ore futures at the Dalian Commodity Exchange have fallen much on Wednesday – by RMB 20/mt ($2.9/mt) to RMB 617/mt ($87.3/mt). Market sources said that tighter production restrictions have already been started to implement in Tangshan and overall steel demand has been softening, which pushed visible pressure on iron ore demand. Starting from October 10, 30 mills in Tangshan have cut capacity of sintering machines, pelletizing plants and blast furnaces to 50 percent.
Rebar futures have lost 1.3 percent or RMB 41/mt ($5.8/mt) today.
