Imported iron ore price continued downturn today as spot cargo at Chinese ports dropped for RMB 10-20 while foreign quotes of Australian cargo dropped for USD 1 while other stayed still.

After the rapid price rising in iron ore, steelmakers turned cautious. Despite some steelmakers still need to restock some cargo in the short term, majority steelmakers were either finished restock or waiting waiting for prices to fall some more before they jump back again.

Considered about the rebounded steel price on Sep and Oct as well as the sharp decline in iron ore price on Aug, steelmakers would have a better profit on Sep and Oct. While after National Holiday, rising demands from traders and downstream end-users could not avoid depressing the market after the concentrate supply release. Supply and demand conflict still existed.

End-user demand hasn"e;t really changed much, it"e;s still not that great, but there"e;s some buying interest out there, that"e;s why we"e;re not seeing steel prices increase with the billet so far.

Since yesterday afternoon, the falling showed on steel market due to the limited demands and pressures of stocks and the trend continues as the falling showed again in key market like Beijing.

Incoming 18th National Party Congress of CPC would elect the new leaders of China, which would also add the uncertainty to the market, with the steel sector keenly watching whether Beijing will be launching more economic stimulus and pro-growth policies.

Sales Prices of Imported Iron Ore at Chinese Ports on Oct 16, 2012

Foreign Quotes for Imported Iron Ore in China 2012-10-16

The most-briskly traded Rebar 2012 Jan contract on the Shanghai Futures Exchange closed at RMB 3,611/tonne on Oct 16.

The three global iron ore indexes, based on spot transactions, fell on Monday. Specifically, TSI 62% at US$ 113.00; MBIO at US$ 114.88; Platts at US$ 114.75. The index average was at US$ 114.21.

Forward swaps: the Singapore Exchange’s Nov contract closed at US$ 109.50/tonne; Dec at US$ 109.50/tonne. (US$ 1=RMB 6.3106; Reporting by Nick Zhang)

Source: Nick Zhang, Analyst, Data Center, Umetal, as arranged on behalf of Hellenic Shipping News Worldwide