Reuters reported that spot iron ore prices in the world top consumer China continued to fall on Tuesday, dragging down key indexes to more than 13-month lows and Shanghai rebar futures also tumbled to a fresh contract low on demand concerns.
Industry consultancy www.cnchemicals.com said stressing widespread worries over steel demand in China Iron ore prices for 63/63.5% Fe grade fell to around USD 165 per tonne including freight on Tuesday down by 8% or USD 15 from over a week ago
An iron ore trader in the coastal city of Dalian said "The overall market is in panic as small mills have started to shut down some blast furnaces, while big ones are relying on their existing iron ore inventories and reduced buying." The traders added that "Tight policy is not expected to be loosened by year end and weakness in the steel market may last at least until early next year."
Shanghai most-active January rebar futures hit a fresh contract low at CNY 4,112 per tonne on Tuesday before ending 1% lower by the midday close.