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Iron ore prices extend further fall before the lunar holiday in China

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At the end of the latest offshore session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at USD 67.90 a tonne, down 0.9 per cent from its previous close of USD 68.50 a tonne, and just 3 per cent above the five and a half year low of USD 65.70 reached on December 23.
Iron ore futures for May delivery on the Dalian Commodity Exchange also dropped by 1.2% to CNY 499 a tonne.
The weakness comes as investors continue to shun growth oriented commodities, with oil and copper among several at or around five year lows. The latest fall came despite data released showing Chinese iron ore imports jumped to an all time high in December as a restocking took place ahead of winter. Still, investors are fearful that Chinese demand cannot sustain such numbers, with any threats to Chinese growth considered a major risk to the iron ore price as major suppliers expand production despite an already oversupplied market.
At the start of the year optimism in the iron ore sector was beginning to grow as the commodity staged a recovery of almost 10 per cent from its December trough, but once again fears of a dead cat bounce are surfacing as oversupply worries dampen investor interest.
Prospects for global growth have taken a turn for the worst over the past month as the spectre of deflation haunts the Eurozone and China fails to quell concerns over a slowdown to its stunning three decade long expansion.
according to data from the General Administration of Customs China’s iron ore imports hit a fresh record in 2014, jumping 13.8% YoY to 932.5 million tonnes, as iron ore shipments in December jumped 29% MoM to a record 86.85 million tonnes, , as steel mills replenished stockpiles in the winter season.
On the other hand, iron ore inventories at ports in China fell below 100 million tonnes for the first time since February. According to data from SteelHome , the stockpiles shrank 0.8 percent to 99.85 million tonnes as of January 9th 2015 down by 12% since peaking at 113.7 million tonnes in July 2014.
Tumbling prices have forced some high cost Chinese miners to shut down and encouraged Chinese steel mills to increase imports and this trend will continue this year
Approaching Lunar holiday in first week of February is traditionally a period of low economic activity. Mills go slow on steel production and market is tepid in activity. Moreover with most of mills having replenished stocks in December they might be cooling their heels before the pick up after lunar holiday.
Price levels are expected to maintain downtrend till Lunar Holiday on slow market activity. 
Iron Ore Fines CFR China 

Origin Grade Price DoD WoW MoM QoQ YoY
Australia Fe 62.5% XX -2 -2 1 -11 -55
Brazil Fe 66% XX 0 0 2 -12 -58
Chile Fe 63.5% XX -2 -3 -2 -13 -52
CIS Fe 63.5% XX -2 -3 0 -9 -61
India Fe 63.5/63% XX -2 -2 0 -15 -55
Indonesia Fe 55/56% XX -1 -1 1 -5 -30
Iran Fe 62/61% XX -2 -1 -6 -12 -56
Malaysia Fe 57/58% XX -2 -2 -1 -10 -46
Mexico Fe 63.5% XX -2 -2 -1 -11 -50
Philippines Fe 57/58% XX -1 0 2 -4 -37
South Africa Fe 64.5/65% XX -2 -2 1 -10 -61
Venezuela Fe 64% XX -2 -3 -1 -13 -62


In USD per DMT
Iron Ore Lumps CFR China 

Origin Grade Price DoD WoW MoM QoQ YoY
Australia Fe 62.5% XX -2 0 2 0 -52
Brazil Fe 65% XX -1 -1 4 0 -51
Malaysia Fe 56/57% XX -2 -2 -1 -7 -43
Mexico Fe 63% XX -2 -2 1 -5 -45
South Africa Fe 64/65% XX -1 3 6 1 -54
Venezuela Fe 64% XX -2 -3 -2 -11 -61


In USD per DMT
Iron ore Concentrate CFR China 

Origin Grade Price DoD WoW MoM QoQ YoY
Chile Fe 67% XX -2 -3 -1 -9 -60
South Africa Fe 64.5% XX -2 -3 0 -9 -56
South Africa Fe 60% XX -2 -3 0 -7 -53


In USD per DMT
Iron Ore Sinter Feed CFR China 

Origin Grade Price DoD WoW MoM QoQ YoY
Brazil Fe 63.5% XX -1 -1 1 -13 -54


In USD per DMT
Iron Ore Pellets CFR China 

Origin Grade Price DoD WoW MoM QoQ YoY
Brazil Fe 66% XXX -1 -1 3 -7 -59
CIS Fe 63% XX -2 -3 0 -8 -62
CIS Fe 65% XXX -2 -3 0 -8 -64


In USD per DMT

Zhejiang Yaang Pipe Industry Co., Limited

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