Falling iron ore prices a boost for steel producers
Global iron ore prices have been on a continuous decline highs of $95 a tonne in February this year to about $56 now, primarily due to slowdown in Chinese demand. Analysts at IIFL highlight that iron ore inventory levels at Chinese ports have risen by 40 per cent over last one year and 15 per cent year-to-date in 2017. The Chinese government had directed steel producers to decrease the metal's output in a bid to reduce pollution. Thus, while iron ore imports were 8.5 per cent higher during January-April, steel production was comparatively much lower at 4.8 per cent.All this has led to iron ore prices tumbling, which analysts at IIFL estimate to hover between $50-65 in the near term. Prices, however, could get some support if some of the iron ore production is cut. The decline in iron ore prices has not been good news for India's largest iron ore producer NMDC, which has also seen its stock price correct by almost 32 per cent from highs of Rs 152.50 in March to Rs 104 now. The limited .27-06-2017