China Securities Journal reported that spot iron ore price might plunge in October following steel output cutback and domestic ore production surge. In fact, imported ore stockpiles at Chinese seaports have stayed above 60 million tonnes for over five straight months and the market price has already shown sign of softening in recent days.
Mr Yang Siming GM of Nanjing Iron & Steel United Co at a recent conference in Xiamen said that iron ore and coke prices are sky high. Coke price has already retreated recently, but iron ore price has yet to see remarkable downward corrections. Steel mills are to step up output cutback in September which would give a heavy blow to spot ore market in October.
Mr Liu Zhimei senior official of CCCMC said ore stockpiles at seaports has hit a record high at 67.55 million tonnes in August however; the steep price has contributed to thin trade and slow off take at the ports.
Domestic traders are in no rush to strike deals at the moment, while the buyers are mostly sitting on the fence. Currently, slipping freight rates has weighed on domestic spot ore price.
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