Reuters reported that spot iron is sitting near its lowest level since July as a result of weaker steel prices in China and low trading activity as the Lunar New Year approaches.
As quoted in the market news:
‘It’s no mystery that this market is winding down ahead of the holiday. There is a lack of buying activity and there are also few cargoes around,’ said a Shanghai-based iron ore trader.
Iron ore for immediate delivery to China dropped 0.3 percent to $123.90 a tonne on Tuesday, according to data compiler Steel Index. The price touched $123.20 last week, its lowest since July 8.
Ample stocks of imported iron ore across China’s ports point to slow consumption of the raw material, curtailing appetite of mills to restock as they have done in past years ahead of the annual spring festival holiday which runs between Jan. 31 and Feb. 6 this year.