SteelMint in conversation with market participants learned that few Odisha based exporters have turned active for iron ore exports amid hike in global iron ore prices after Vale disruption.
As per sources, an Odisha based merchant miner has booked 2-3 vessels of around 50,000t each carrying low grade fines for export during March/April. Traders in Odisha are also learned to have booked decent quantities in recent past.
Fe 62% fines index hit $94/t, CFR China mark after the Vale incident in Jan’19 anticipating shortage of 70mnt in Seaborne iron ore supply. Index was recorded at $87/t, CFR towards the close of this week.
Amid shrinking steel margins, Chinese mills are preferring low-grade iron ore and concentrate rather than going for high-grade ore & pellets.
Following this, discounts on low grade iron ore fines have come down to 33% which was around 37% a month back.
It is to be noted that export duty on low grade ore is nil, making it more attractive for exports.
Indian iron ore in Jan’19 was recorded at 0.64 MnT, according to data maintained with SteelMint.
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