After witnessing a significant hike in the price of iron ore, things have started to change. Since the past one week, the prices of the iron ore are on continuous decline. In the past the prices if the iron ore have witnessed a hike of
12%.

It was believed that the demand of the iron ore in the international market to surge as the prices of it touched nadir at USD 135 per tonne to USD 137 per tonne. As the prices were surging, the mills adopted the practices of pilling up the stocks with the pursuit of increasing the competitions.

But it seems like the practice of the mills to book profits have proved fatal as the prices of the iron ore are on continuous decline. Now sellers are eyeing on the opportunity to book profits. As the prices of the iron ore are quite low, the sellers are eyeing on FOB Indian port, where prices are changed not after a stipulated period.

While commenting upon the staggering prices of Iron ore in China, an iron ore trader in Shanghai noted, “The price will continue to slide this week. Sentiment hasn't really changed much, steel demand in China is still very limited”.

At present, the prices of Iron ore in the China market is $117 a tonne while in Australia and India its prices are $135-$137 a tonne and $143-$146, respectively. Traders are least hopeful of its prices regaining momentum as its supply is not adequate.

It has been warned by the second most influential, Rio Tinto, that the economic downturn of the US and Europe would further impact its market. Moreover, the steel industries in China would take some time to recover from the serious attacks of inflation and global crunch. Till then, the Iron ore market would remain staggered.