MBIO Iron ore Index 13 Nov 2013

MBIO Index 13 November 2013; Index at $136.74/tonne

13 NOVEMBER 2013

MBIOI62 Index 13/11/2013 $136.74/tonne $ Change +$0.78/tonne 

MBIOI58 Index 13/11/2013 $119.87/tonne $ Change +$0.68/tonne 

MBIO Index 12 November 2013; Index moves sideways

12 NOVEMBER 2013

Index moves sideways
MBIOI62 Index 12/11/2013 $135.96/tonne $ Change +$0.03/tonne

MBIO Index 30-May-2011

■MBIO Index 30 May 2011; $170.84/tonne; Index starts week continuing down to $170.84

MBIO Index 30/5/11 $170.84/tonne MBIO Index 27/5/11 $170.97/tonne % Change -0.1%/tonne $ Change -$0.13/tonne The MBIO Index today calculated to $170.84/tonne cfr Qingdao on a 62% Fe basis. This is a fall of $0.13/tonne as the index starts the week contiuing the recent donward trend. Very few transactions were heard today, a reflection that many market paticipants have negative expectations on the iron ore spot price. 63.5% Indian material was assessed today to be in the range of $178-$179/tonne, a fall of $1/tonne on Friday. CISA have predicted that China's steel market would be affteced by power cuts in the coming few months, as was seen in the second half of last year. This helped push down prices last time as a number of smaller mills, many who rely more heavily on the spot market, saw their demand for steel raw materials reduced. Sentiment remains negative with few in the market seeing demand helping to support prices in the short term.

■MBIO Index 27th May 2011: Index drops to $170.97

MBIO Index 27/05/11 $170.97/tonne MBIO Index 26/05/11 $171.65/tonne % Change -0.4% $ Change -$0.68/tonne The Metal Bulletin Iron Ore Index calculated today to $170.97/tonne cfr Qingdao on a 62% Fe basis. As again predicted, this is a decline from yesterday, of $0.68/tonne. The Index has now fallen $4.28/tonne from a week ago, and more than $12/tonne from the last peak in early May. Assessments for Indian material at 63.5% Fe have dropped $1/tonne to $179-180/tonne cfr China. High levels of steel production at Chinese mills are being offset by relatively strong supply, and an increased use of domestic iron ore. Despite the obvious demand, purchasing sentiment is negative, with offers heading slowly but steadily downwards. It should be noted that although the price has fallen more than $10/tonne this month, we are still at historically high levels. The upcoming restrictions in power consumption may be leading some mills to maximise production now. The recent increase in steel output could be reversed, with a negative effect in the coming weeks on iron ore demand. The immediate outlook for iron ore prices remains negative.