UPDATE 2-Spot iron ore falls below $100/T; China, Singapore futures at record low

lunes 19 de mayo de 2014 09:42 GYT
 

* Spot iron ore at $98.50 a tonne, lowest since Sept 2012

* Weak China steel market as Shanghai rebar near record low

* Iron ore stocks at China ports at record high 112.55 mln T

* Rio, Fortescue shares sag to multi-month lows (Recasts, adds details, updates prices)

By Manolo Serapio Jr and Maytaal Angel

SINGAPORE, May 19 (Reuters) - Spot iron ore prices fell to a 2-1/2 year low on Monday while China and Singapore futures hit record lows, under pressure from rising supply and weaker Chinese steel markets.

With prices down 25 percent this year, a sustained decline in iron ore threatens to squeeze out high-cost producers, led by miners in top consumer China. That means China's iron ore imports may stay strong unless steel demand weakens to such an extent that mills curb output.

"Chinese steel mills have high finished inventories and port stocks of iron ore are climbing so there's going to be less appetite to buy iron ore in the next few weeks," said Sucden analyst Kashaan Kamal.

Spot iron ore for immediate delivery to China .IO62-CNI=SI dropped 2.1 percent to $98.50 a tonne, its lowest since September 2012, according to data provider Steel Index.   Continuación...