UPDATE 2-Iron ore prices hit lowest since 2009 as oversupply woes linger

jueves 11 de septiembre de 2014 10:36 GYT

* Spot iron ore has fallen nearly 40 pct this year

* Traders clearing ore stocks, mills buying hand to mouth-trader (Updates prices)

By Manolo Serapio Jr

SINGAPORE, Sept 11 (Reuters) - Iron ore prices fell on Thursday to their lowest since September 2009, extending a losing streak into a third day, amid abundant supply and slower growth in Chinese demand that have seen the steelmaking commodity lose nearly 40 percent in value this year.

The weaker steel market in China, the world's biggest consumer and producer, is also a major strain for iron ore, with slower consumption prompting steel mills to cut prices for next month.

Iron ore for immediate delivery to China .IO62-CNI=SI fell 0.4 percent to $81.90 a tonne, according to data compiled by Steel Index. This is the eighth daily fall since the beginning of September.

Along with miners unloading cargoes in the spot market, Chinese traders are clearing their stocks at ports, piling further pressure on prices, traders said.

"Quite a few traders in Tangshan and Tianjin are clearing their port stocks, selling some cargoes at a loss as prices could fall some more," an iron ore trader in Shanghai said.

Most mills buying iron ore are doing so hand to mouth, choosing delivery dates that are closer to the time that they would need the material instead of stocking up ahead, he said.   Continuación...