SHANGHAI, Nov 2 (SMM) – Iron ore prices have continued to decline recently. Iron ore futures touched limit down in the morning market. The most-traded 2201 contracts created a record low of 565.5 yuan/mt, weakening the ferrous metals prices.
There are multiple reasons. The port inventory of imported iron ore has accumulated for five periods to 140 million mt and the departure from Australia and Brazil has increased recently; the demand for iron ore trended lower as many blast furnaces closed on the approaching of heating season and Winter Olympics Games; ocean freight continued to decline and its support for imported products weakened; some mills have suffered losses as the finished product prices trended lower and profits at mills less weakened raw material prices; the demand kept weak while the supply stayed loose. Iron ore prices are expected to decline further.
