Collapsing freight rates and FOB spot iron ore prices to China last week brought spot below Australian contract prices for the first time since 2003. Moreover, CIF prices for Brazilian ore fines to China were almost level with Australian ore at around $95 per tonne, according to Macquarie Research. Chinese steel demand and prices have dived, cutting back demand for iron ore as well, resulting in battered steel, iron ore and freight markets. At the time of writing, the latest deals for Brazil to China have fallen to $22 per tonne while Australian rates are quoted at $ 10 per tonne.
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