Chinese Spot Iron Ore Fines Price Fall Sharply on Concerns for Coronavirus

Chinese spot iron ore fines (Fe 62%) index decreased sharply by USD 7.35/MT today (i.e 28th Jan 2020) to USD 84.7/MT, CFR China, against the last closing price at USD 92.05/MT CFR, China. The prices down up to almost 2.5 months low as the level was last witnessed towards mid Nov'19 at USD 83/MT, CFR China.

Chinese steelmakers have suspended their trade activities during the Lunar New Year holidays observed this. Also, the contagious disease like Coronavirus spooked last week led the paucity of trade in China. As per the sources mills are reluctant to do any trade at present dreadful scenario.

The China coronavirus breakout could delay the spring restart of construction projects and may pull down the prices further.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 127.05 MnT as of 22nd Jan'20 as against 127.35 MnT assessed a week before.