Iron ore loses around $7/t as bearish mood prevails in steel

摘要

Iron ore posted a nosedive Monday on increased pace of steel price drop as market sentiments in China remaineddepressed. At the same time, trading activity improved as the raw material is not expected to decrease so sharply inthe near future.Australian iron ore fines 62% Fe plunged by $6.5/t to $63.5/t CFR, which is the biggest daily drop registered this year.Its quotes followed a slump in futures and spot steel prices as bearish moods continued to prevail in the market. “Steelconsumption is falling on both seasonal and economic factors, with margins shrinking fast,” a Chinese analyst toldMetal Expert. According to SteelHome data, Chinese mills’ inventories of five major steel products kept piling up forthe second week in a row, adding 8.3% last week, as traders cut purchases.