Reuters reported that iron ore prices in Asia slipped further this week as Chinese steel mills curtailed fresh purchases, worrying over slumping steel prices that suggested the rally of close to USD 200 last month may have ended.

An iron ore trader in Tianjin in northern China said that there are few transactions taking place. Iron ore stocks at ports are still standing high, but tradable tonnages are very low indicating traders have also suspended making bookings.

Chinese consultant Mysteel quoted Indian origin ores with 63.5% iron content at USD 177 per tonne to USD 180 per tonne C&F down from USD 182 to USD 185 last week.

The miner in Goa said that uncertainty about last month's ruling by the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters barring members from importing ore with less than 60% iron content continued to hurt sentiment. There are many vessels being loaded in Goa right now. I wonder if their letters of credit will be opened.

Traders said that falling steel prices in China on weakening demand outlook suggested more downside to iron ore ahead. Steel mills in China said that they were drawing on stocks, waiting for clearer direction about prices in the world's largest steel making nation.

The iron ore trader in Tianjin said that steel mills said they own inventories worth about one month's production. Other steel millers in China said they preferred to buy the locally mined iron ore as it was cheaper than imported ore.

information from www.steelguru.com