Demand for Indian origin low grade iron ore fines in China have weakened further amid significant stockpiles in Chinese major ports and quality issues. As per conversation with market participants, the discount on low grade iron ore fines (Fe 57%) has widened to 45-47% against prevailing discount of 42-43%.
Price assessment for Fe 57% grade fines now stands at USD 33/MT, CFR China which is equivalent to USD 20-21/MT FoB India (west coast) and USD 23/MT FoB India (east coast).
Thus Indian low grade iron ore export prices have moved down by USD 2-3/MT in the latest assessment.
Iron ore inventory at Chinese major ports have further increased this week by 2.04 MnT to 140.52 MnT, given that a large proportion of it is low-grade. Amid strict environmental concerns, Chinese steel mills are focussing on usage of high grade material.
Goa iron ore export movement hampered over truckers strike – Iron ore export movement from Goa has been impacted by the truck operators demanding hike in transportation fare.
Indian iron ore exports in Nov’17 – According to customs data maintained with SteelMint, around 262,620 MT iron ore has been exported o far in Nov’17 (till 23 Nov’17) from Mormugao & Redi ports. Two vessels carrying 158,000 MT iron ore are seen at anchorage and expected positions. Vedanta has remained the largest exporter at 90,380 MT from west coast of India so far in Nov’17.
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