AI
Sunday, July 18, 2010 7:56:32 PM
Hi Dew, CLF may be a good buy now but it might get better.. below chart has a resemblence to the SPY chart which most think has a ways to go down. Just my thought, I've no position in it..
Falling China demand worries iron ore exporters
Vishwanath Kulkarni
New Delhi, July 14
Indian iron ore exporters are getting desperate in a slowing market where Chinese buyers prefer to wait-and-watch before striking new deals. China is the largest market for Indian iron ore accounting for close to 90 per cent of total exports.
Spot prices of iron ore, under pressure the past few months, have dropped further in the absence of any new contracts and are hovering around $100 a tonne on freight on board (f.o.b.) basis, down from $160-180 in April.
“Sellers are becoming desperate as Chinese buyers wait-and-watch the market,” sources at a public sector exporter said. “There are very few enquiries. In fact, we are forced to approach buyers now,” they added.
At an industry event organised by the Federation of Indian Mineral Industries in Indonesia last week, Indian exporters were seen chasing the few Chinese buyers, sources said. According to FIMI, iron ore exports were down 15 per cent at 20.8 million tonnes (mt) in April-June compared with 24.5 mt in the corresponding quarter last year.
“Demand has come down drastically. There is no buyer from China now,” said Mr R. K. Sharma, Secretary-General, FIMI. However, some stray shipments have been happening. China is the largest market for Indian iron ore. .
Inventory pile up at steel mills due to reduced offtake from crisis-hit Europe coupled with Government intervention to curb the overheated housing sector has prompted Chinese steelmakers to go slow on production.
This has resulted in lower demand for iron ore impacting the spot prices, which have dropped by close to 40 per cent since mid-April to a little over $100 a tonne on f.o.b. basis. The 63.5 per cent grade ore is being quoted at between $105 and $110 compared with around $180 in April.
“The market is in a very bad shape as the demand has reduced substantially in the past few weeks. There are no new deals,” said sources at a multinational commodity exporter. The iron ore prices could see a further decline, they added.
Exports have slowed since the beginning of the current financial year.
http://www.thehindubusinessline.com/2010/07/15/stories/2010071553690100.htm
Falling China demand worries iron ore exporters
Vishwanath Kulkarni
New Delhi, July 14
Indian iron ore exporters are getting desperate in a slowing market where Chinese buyers prefer to wait-and-watch before striking new deals. China is the largest market for Indian iron ore accounting for close to 90 per cent of total exports.
Spot prices of iron ore, under pressure the past few months, have dropped further in the absence of any new contracts and are hovering around $100 a tonne on freight on board (f.o.b.) basis, down from $160-180 in April.
“Sellers are becoming desperate as Chinese buyers wait-and-watch the market,” sources at a public sector exporter said. “There are very few enquiries. In fact, we are forced to approach buyers now,” they added.
At an industry event organised by the Federation of Indian Mineral Industries in Indonesia last week, Indian exporters were seen chasing the few Chinese buyers, sources said. According to FIMI, iron ore exports were down 15 per cent at 20.8 million tonnes (mt) in April-June compared with 24.5 mt in the corresponding quarter last year.
“Demand has come down drastically. There is no buyer from China now,” said Mr R. K. Sharma, Secretary-General, FIMI. However, some stray shipments have been happening. China is the largest market for Indian iron ore. .
Inventory pile up at steel mills due to reduced offtake from crisis-hit Europe coupled with Government intervention to curb the overheated housing sector has prompted Chinese steelmakers to go slow on production.
This has resulted in lower demand for iron ore impacting the spot prices, which have dropped by close to 40 per cent since mid-April to a little over $100 a tonne on f.o.b. basis. The 63.5 per cent grade ore is being quoted at between $105 and $110 compared with around $180 in April.
“The market is in a very bad shape as the demand has reduced substantially in the past few weeks. There are no new deals,” said sources at a multinational commodity exporter. The iron ore prices could see a further decline, they added.
Exports have slowed since the beginning of the current financial year.
http://www.thehindubusinessline.com/2010/07/15/stories/2010071553690100.htm
Trade Smarter with Thousands
Leverage decades of market experience shared openly.
