Hongmei Li, head of content at Mysteel, spoke to CNBC-TV18 about the current trend in commodities markets.

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Talking about iron ore prices Li said, “I am in New Delhi attending Iron Ore conference and there has been a lot of market talks and discussions. It is very interesting to see different responses.”

“The Vale accident is still ongoing a lot of, a press releases are coming up from Vale regarding the preventive measures, regarding rescue efforts and everything so people still cannot really fully understand the situation and in such a context it is kind of avoidable that the prices will be tentatively volatile,” she added.

“The Chinese will be saying that in the short term or even in the medium term they do not think that supply will be any issue because they got enough live inventories, but this doesn’t play much on market sentiment that is for sure. So whenever something new comes up the prices will be reacting to that strongly so that is an indicator that market is still trying to find the direction of where it goes from here", Li said.

According to her, "It seems the prices will be fluctuating between USD 80 per tonne and USD 90 per tonne; USD 90 per tonne would be a challenging point."