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Iron ore prices may soften as demand from China slowing down – FIMI

It is reported that industry experts have said that iron ore prices in the global market are likely to soften in the near term and may trade around USD 115 per tonne to 120 per tonne as demand from major consumer China is slowing down.

Mr RK Sharma t Secretary General of Federation of Indian Mineral Industries told PTI that "We don't expect prices of iron ore rising from the present level as demand is slowing down in China. Rather, it may soften a bit or remain at the present level as there is sufficient supply in the global market.”

Referring to reduced supply from India, Mr Sharma said the country is a fringe player in the global iron ore market. He said that "Countries like Australia, South Africa and Brazil are the market leaders in this commodity and determine prices. India is a fringe player as far as pricing is concerned.”

About the impact of Australian tax on iron ore, Sharma said it would not push up prices in the near future. He said that "Despite the Australian tax, iron ore miners have less leverage to pass on the rise in cost to buyers as there is enough supply in the global market with subdued demand.”