Spot Price of Imported Iron Ore Falls below $100 A Ton

飞雪寒冰

The spot price of imported iron ore fell below US$100 a ton, reflecting high domestic stock levels and a slump in steel prices.

The price for 63 percent grade Indian fine ore was US$95 to US$97 per ton on August 24 on a cost and freight basis, down from US$110 per ton on August 10, according to industry consultancy Mysteel.

"The price drop was caused by an increase in steel and iron ore stocks at mills and sea ports and a decline in steel prices," Xu Guangjian, analyst with the Umetal Research Institute, told Caijing on August 24.

飞雪寒冰

The slump had sparked panic among iron ore traders, who might now rush to clear their stocks, which could drive prices even lower, he said.

Mysteel analyst Xu Xiangchun said iron ore prices were still high compared with revised steel prices.

"The steel price has fallen to its early July level, but iron ore is still US$20 a ton higher than it was in early July," he said, adding that iron ore will likely fall to about US$80 a ton.

The total stock of iron ore in 19 major Chinese ports was almost 73 million tons as of August 22, up 48 million tons on a week earlier, according to Umetal.

The MySpic Index, a monitor of China's steel prices produced by Mysteel, has fallen 13 percent since August 7.

The spot price of iron ore rose from about US$60 a ton in April to a high of US$110 in early August.