Imported physical iron ore prices CFR China after showing stability for few days eased again in Week 52with Australian iron ore fines of 62.5% Fe sliding to USD 67 per tonne CFR China. The prices of various items / grades / origins lost USD 2-3 during Week 52 to close 2014 at negative note for iron ore miners

Due to on going winter vacations, global prices for metallics, semis, longs and flat products remained unchanged as markets are closed. After major correction in Week 50 & 51, steel market was stable in Middle East. Steel market remained closed in Europe also

However, amid weak demand from the property sector, bearish sentiment prevails in Chinese finished steel market. Steelmakers have cut their sales prices in order to bring in cash and thus seek to pay lower prices for imported iron ore. Many firms are liquidating their positions to repay bank loans before year ends. Steel mills are also facing a cash crunch so they are exiting the futures market to get cash. A spike in short term interbank lending rates has also led to a liquidity squeeze, which has made it difficult for buyers to get credit for import orders. China's money market rates jumped this week to 5.48 percent, versus 3.38 percent earlier in the month. Domestic prices of almost all steel input, semis, long and flat products posted WoW losses in China giving a clear cut direction that 2014 has been a bad year and also diminishing hopes of fire crackers in Q1. The Chinese Long Product Price Index slid by 82 points to settle at 4929 and Chinese Flat Product Price Index lost 49 points to dip to 4829 level. In other words current domestic steel prices in China for both long and flat products are now less than 50% of last peak in July 2008. In one of the benchmark locations ie Shanghai, scrap down by CNY 70 per tonne WoW (CNY XX60), steel grade pig iron down by CNY 70 per tonne (CNY 2090), billets down by CNY 120 per tonne (CNY XX 50), rebar down by CNY 30 per tonne (CNY XX 10), wire rod down by CNY 110 per tonne (CNY XX 20), HR down by CNY 70 per tonne (CNY XX 50), CR down by CNY 20 per tonne (CNY XX 40) and wide plates down by CNY 40 per tonne (CNY XX 40). All these prices are inclusive of 7% VAT

Base metal prices at LME continued to exhibit weakness in Week 52. While prices of Nickel, Tin and Aluminium slid to USD 15250 (-250 WoW), USD 18790 (-385 WoW), USD 1833 (-55 WoW) respectively, Copper and Zinc recovered a bit to USD 2152 (+31 WoW) and USD 6360 (+11 WoW).

The Baltic Dry Index, which measures the price of transporting dry bulk by sea, a composite of rates for different ship sizes factoring in the average daily earnings of Capesize, Panamax, Supramax, and Handysize dry bulk transport vessels, continued on negative path in Week 52. BDI closed at 782 down by 32 WoW, BCI at 474 down by 43, BPI at 856 down by 73 WoW and BSI at 887 down by 30 WoW. On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching 11,793 points. On 3 February 2012, the index had dropped 647 points, the lowest since 1986.