Frbiz Reports Iron Ore and Coking Coal Price Will Decline

Friday, Sep 03, 2010

Frbiz reports that iron ore and coal coking price next quarter will appear decline in the first time.

Because the relationship between steel prices and daily cost of goods, iron ore and coking coal cost are not only the key to the global economy but also for the global two largest heavy industries, mining and steel manufacturing profitability is also important.

Frbiz estimates that the iron ore prices will fall from10% to 15%, coking coal prices will fall from 5% to 10%. Prices decline will lower the steel prices or improve steel producers profit margin.

Frbiz reports that global steel oversupply will blow steel production related commodities short-term needs. But before the prices decline, iron ore prices had experienced last year price doubled increase situation and then triggered steel producers' protest. Even after the depreciation, the iron ore prices will remain high level than last year.

In the fourth quarter of this year, due to the iron ore and coking coal price in spot market is relatively low, and the demand also slow down, Frbiz believes that iron ore and coking coal price will decline in fourth quarter.

Source: Frbiz