Iron ore price tumbled 5% about USD 4 per tonne during the week raising concerns of floor being lowered to October 2009 level when prices had fallen to USD 88 per tonne.

If the current trend of over supply continued the risk of price levels setting a new low is possible.

The price levels have already tumbled 33% this year.

Major producers in Australia, which have average costs of about USD 40 to USD 50 a ton, are continuing to increase supplies even with prices near the lowest level in five years. The finished steel prices broke silence today with all round decline as prospects of low economic growth and property market remaining lukewarm. 

Change on 26th August 2014 as compared to 19th August 2014

CLPPI – Chinese Long Product Price Index

CFPPI – Chinese Flat Product Price Index

CHISPI – Chinese Steel Price Index