The more than 2% fall in rebar steel futures at SHFE on Monday, lowest in nearly six weeks, outlines a hazy outlook for steel demand amid oversupply in China thus affecting the prospects for seaborne iron ore trade in short term.
As per market reports, most of the players remained quiet on week opening and Indian iron ore cargos, although offered at discounted prices, failed to evince interest from Chinese steel mills.
But tight supply situation from India could keep the iron ore [price slide in check. In addition, the reduction in Chinese domestic iron ore production during winters could increase demand from imports.
Some market players said that iron ore prices could rebound after China's National Day holiday, if steel mills rush to stock.
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