Iron ore price
levels have sunk to new lows touching late 2008 level and are set for further
losses as a soft steel market in top consumer China limited appetite for spot
cargoes. Iron ore prices have fallen further by 19% already this year after
sliding 47 percent in 2014 and analysts see them cruising to below USD 50 CFR
China mark soon.
At below USD 58 per tonne for fines Fe 62.5,
iron ore is at its lowest since records began in late 2008.
Citi on Tuesday forecast iron ore prices would
drop to around USD 50 a tonne in the short term as demand from Chinese steel
mills wanes and oversupply grips the international seaborne markets. Citi iron
ore and steel trading head Mark Lyons told an industry conference “Chances are
with the steel margins where they are, there will be a fall in iron ore prices
to around USD 50 a tonne. Steel markets in China are looking in pretty bad
shape. But ore prices will average USD 58 a tonne in 2015.
Iron ore imports have dropped by 11% MoM from
January to February from 75 million tonne to 67 million tonnes. As of March 9,
inventory of iron ore at 33 major Chinese ports amounted to ………………
Supply of SAIL rails to Iran
Parliament was updated on supply of rails from SAIL to
Iran
Mr Vishnu Deo Sai minister of State for Steel and Mines in written reply to the
LokSabha said Steel Authority of India has entered into an "associateship
agreement" with State Trading Corporation of India (STC) for supply of one
LT steel rails to STC for exporting to its potential customers in Persian Gulf,
which may include Iran.
He said that "Against this agreement, so far no rails have been supplied,
as the contract between STC and Indian Railways is not yet effective since
Iranian Railways is yet to obtain necessary approvals."
Source – PTI