India: Low-Grade Iron Ore Fines Export Prices Up in Recent Deals

Indian low-grade iron ore fines export prices increased further by USD 1-2/MT towards weekend compared to price assessment made in mid of this week. However on a weekly basis, prices increased by USD 4-5/MT and the current assessment for Fe 58/57% fines stands at USD 66-67/MT, CFR China. Following price surge in spot iron ore fines due to supply concerns, low grade fines export prices also witnessed increment.

Deals reported at increased offers-:

— A global trading company concluded the deal for two-vessel of low-grade fines (Fe 57%) at around USD 66-67/MT, CFR China this week. The material shipment is scheduled for Jul’20.

— In another deal concluded towards mid of this week, an Odisha based miner booked one vessel for low-grade fines (Fe 57/58%) for export at around USD 66/MT CFR China.

Spot iron ore fines price cross USD 100 on supply concerns-:

On Friday (29th May) spot iron ore prices rose to ten-month high over anticipated Brazilian iron ore supply disruption followed by strong demand and falling inventory at the Chinese ports. All these factors seem to be responsible for the price hike in the global market.

Chinese spot iron ore fines prices increased significantly by around USD 4/MT W-o-W yesterday i.e 29th May’20 to USD 100.90/MT, CFR China against USD 96.85/MT, CFR China on 22nd May. Similarly, in the last one-month spot prices went high sharply by around USD 16-17/MT compared with prices of USD 84/MT, CFR China on 4th May’20.

The concerns over coronavirus have been impacting the Brazilian supplies of iron ore cargoes amid rising COVID-19 cases at the iron ore mine in Itabira Brazil, owned by Vale, which may lead to operation suspension at the mine.

Port inventories in China continue to fall – As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 109.5 MnT, a drop of 0.5 MnT till 28th May this week as against 110 MnT assessed a week ago. On a monthly basis, inventory at China port has come down to around 6.15 MnT against 115.95 MnT on 29th April last month.