Eases slightly to 136.27 from 136.47 (0.1 per cent)Commentary:...

Eases slightly to 136.27 from 136.47 (0.1 per cent)

Commentary:

In the steel market prices have seen a broad weakness again today. Rebar prices in the major cities have edged down as the winter weather takes hold.

We believe that the current relative weakness in steel prices will cause the recent strength in iron ore prices to come to an end as buyers find it increasingly hard to justify spot purchases at current prices. Although port stocks have been drawn down significantly, the seasonal slow down in steel output will mean iron ore prices will not be sustained at current levels over the medium term.