NEW DELHI (Commodity Online): Weak Chinese demand has pulled down the price of iron ore by 11% to $130.80 a ton, lowest since November 8.
The industrial activity of China which has been affected by the ongoing uncertainities in the global economy and it was visible on the Chinese Manufacturing data.
According to data from the China Iron and Steel Association, the average daily output of crude steel stood at 1.66 million tons (mt) over November 11-20, unchanged from the previous 10 days, reported The Business Standard
The overall consumption of iron ore is likely to remain low as the buying activities from Chinese mills are to remain under pressure until December-end due to poor demand from construction sectors.
China’s manufacturing sector recorded the weakest performance since the global recession eased in 2009, indicating the Europe’s crisis weighs on the world’s second-largest economy.
Meanwhile, India’s steel demand is estimated to grow at eight-nine per cent this year, despite a slowdown like situation in construction and infrastructure sectors,according to the Ministry of Steel. But the shipments are expected to fall drastically.
China is the largest producer and consumer of steel.
