Author: Paul Ploumis27 Oct 2014 Last updated at 07:57:13 GMT
BEIJING (Scrap Monster): In Dalian Commodity Exchange, the price of iron ore declined to 86 dollars per tonne, along with that, in Singapore Exchange, the price of iron ore, which was stored in for the December Iron Ore Contract declined to 79 dollars per tonne.
An iron ore trader based in Shanghai stated that, the recent instability in the market makes it difficult for the traders to close their deals. As the Chinese steel mills were busy restocking their raw materials, the spot price of iron ore in the month of October raised to 83.10 dollars per tonne, in China, which was about five years low at 77 dollars per tonne, by the end of the month September.
But all the hopes based on the rise of the price was shattered by the decline of iron ore prices in the last week below 80 dollars per tonne, stated the data published by Steel Index. The trader stated that, when the prices suddenly increase, the buyers are worried whether the price in their sale would increase or not, when the prices are declining the sellers are worried the buyer would accept the product or not, so it is very much important that, the government publishes the letter of credit.