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Spot Prices of Iron Ore Down

As steel mills in China, the world's top buyer of iron ore, continue to suspend buying sprees due to a weak domestic demand, this has caused spot prices of the raw material to plummet Monday.

On the Shanghai Futures Exchange, the most traded May steel rebar contract dropped to $650 per tonne on Monday, down 0.76 per cent from the previous close. On Friday, iron ore index with 62 per cent Fe grade slid 1.27 per cent to $132.1 per tonne, its lowest since Nov. 30.

Steel mills have been keeping minimal stockpiles of the steelmaking raw material following a gloomy outlook for steel demand in 2012.

But there are some traders who believe prices will regain normalcy in the coming weeks.

"The overall market remains very cautious, but I expect there should be a new wave of replenishing inventories by mills before the Lunar New Year," Reuters News quoted an iron ore trader as saying. "However, I expect iron ore prices will continue to fluctuate at current levels in the first quarter of next year."

Earlier, research and investing company Goldman Sachs & Partners Australia Pty Ltd said prices of iron ore will average $150 per metric tonne from 2012 to 2015, on expectations that Brazil's output of the raw commodity will slide "lower than expected" in 2012.

Read more:

Prices of Iron Ore to hit $150 per Metric Ton Average Predicted in 2012

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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