Iron ore prices - Supply vs. demand, as always
Mint: Iron ore rates halve as Chinese orders dry up
India’s exports of iron ore to China have declined to almost nothing since August following a slump in demand for the commodity in that country, resulting in an almost 50% decline in the price of the mineral in the global market.
India exported 92 million tonnes (mt) of iron ore valued at around $6 billion (Rs29,220 crore today) to China in 2007-08. This accounted for 88% of the country’s total export of the mineral.
“The price of medium-grade (iron ore) fines was around $140 per tonne three months ago and now the exporters have reduced it to $85 per tonne.”
“Steel prices have decreased worldwide, (and) China has a surplus stock of steel —all of which have caused this fall in demand. The slowdown may also have affected the financing capacities of Chinese steel makers.”
Inflation? I don’t think so.
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