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Seaborne iron ore sees largest fall since September 2008 - 26 October 2011

<b>Steel Business Briefing</b>'s sister publication <i>Platts</i> 62% Fe iron ore assessment cfr North China plummeted by $10/dmt on Tuesday to reach $128.50/dmt. This price is the lowest seen since 22 July 2010, the largest daily fall in three years, and marks the twelfth working day in a row of decline.

Weaker transactions, resulting from poorer steel and ore demand, stemming from increasingly tight Chinese credit are factors cited by traders. A number of shipments of Australian fines were sold on spot, by both traders and miners; with some speculating that these may be contractual volumes that steelmakers have requested be pushed back owing to weak demand.

One Hebei trader said: "Seaborne cargoes loading forward are now lower priced because they can be bought cheaply from the miners, and port stocks need to play catch up because they were bought at far higher prices".

The spot reference price from <i>The Steel Index</i> for 62% Fe iron ore cfr North China dropped by a similar amount on Tuesday, to reach $131.70/dmt. As large volumes of high and low grade ore was sold today at levels so far below the index, many are now wondering where the bottom for this market will be, TSI said.

Australian fines were sold at around $140/dmt on Monday and were traded around $10 less the following day.

 

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