Iron Ore Prices and Market News, Oct 5th 2011

The Iron Ore prices have slipped in past few days for almost 11% in the world market. Presently its trading around US$ 173/MT which was in its peak this year at US$ 192/MT in Feb.
The prices are expected to fall further to US$ 160/MT which will be around 8% in the coming days. It may be possible that the natural condition like weather and delay in supplies can push the prices again to its peak but almost in regular supply base the prices are expected to fall further.
The rise in the price of Iron Ore this year in Feb was due to the increase in the crude steel productions and along with the rainfalls in Australia and Brazil.
The ban of iron ore supply from India’s Karnataka state also has a great impact on the prices of iron ore. The China’s own domestic supply of iron ore have increased to 23%. The production of iron ore from Australia and Brazil may increase in coming days as now the climatic problems are over.
Some miners are also expecting that with the increase in domestic iron ore production in China, they supply can be study at US$ 86/Mt by 2016 for long term supplies. The prices above US$ 130/Mt will be supported only by the high cost producers in China and India.