On Thursday, Indian origin ores with 63.5 percent iron content, were quoted in China at $149-$151 a tonne with freight, down from last week's $159-$162, China consultant Mysteel said. The spot price for 62 grade iron ore .IO62-CNI=SI from The Steel Index was at $142.7 a tonne on Wednesday, down $0.80 from the previous day.

In China, a trader said demand for imported iron ore continued to stay weak with many steel mills still using local stocks at discounted rates.

"Steel mills have continued purchasing domestic ore, without showing any interest for imported material," said a trader in Shandong in north China.

INDIA SUPPLIES TO DIP

Exporters said Indian supplies would fall in the weeks ahead owing to the annual monsoon, slated to hit the southern coast next week, and more forward to gradually cover the full country. [ID:nSGE64Q05Z]

"Very little iron ore fines will be able to go from Goa. Lumps will continue to go though," said Glen Kalvampara, secretary of Goa Mineral Ore Exporters' Association in Goa in west India that supplies mainly iron ore fines.

Most of India's iron ore exports of about 106 million tonnes comprise the powdery iron ore fines that tend to absorb moisture and make ships heavier.

Steady steel prices in China also give Indian exporters hope that iron ore prices may stop from falling. 

Sourced from www.in.reuters.com