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Iron Ore Price For April - June Quarter Down Over 9% To Approximately US$130
= Down for 3 quarters in a row on the back of decreased steel production =
Iron ore selling price in Asian market including Japan and South Korea for April - June quarter 2012 dropped largely on the back of decreased production. Pilbara iron fine price decreased by over 9% from the previous quarter to approximately US$130 (FOB Dampier and Cape Lambert, Fe content 62%), resulting in declining for 3 quarters in a row. Pricing for lumpy ore is under negotiation. The lumpy ore price for January - March was approximately US$153.

In China's steel market, the price is on the decrease due to lower demand and inventory for February has been rapidly increasing at 19 million tonnes, which was the highest record in recent years. In January, crude steel production totaled 52.072 million tonnes, down 13.0% from the same month the previous year, recording the largest decrease seen in a while.

Asian leading steel manufacturing companies had largely decreased profit or a deficit as higher material cost was not reflected enough to steel price. Furthermore, steel users are requiring steel manufactures to lower steel price more.

Resources companies are suffering cost increase as well. In Australia, minerals resource rent tax and carbon tax on resources companies will be started in July. Royalty is also planed to be risen. It is said that their width of margin might be on the decrease. It is worried that the industry's oligopolization will accelerate if the hardship of small and medium-sized companies continues.
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last modified : Wed 07 Mar, 2012 [09:58]
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