China steel industry is struggling with two major issues such as increase in steel stocks owing to sluggish demand and unclear government rules for environmental regulation.
Today spot Iron ore prices declined by USD 1/MT owing to low Iron ore buying by steel mills. Mills are purchasing ore directly from ports according to requirements. Unclear environmental rules from the government have also stopped mills to directly participate in spot buying of Iron ore.
|
Iron Ore Fines Prices on 20 Mar, 2014 |
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|
Country |
Grade |
Price in USD/MT (CNF) |
M-o-M |
|
India |
Fe 63.5/63 |
111 |
-12 |
|
Fe 61/60 |
104 |
-12 |
|
|
Fe 58/57 |
94 |
-9 |
|
|
Fe 53/52 |
70 |
-9 |
|
|
Brazil |
Fe 65 |
112 |
-16 |
|
Australia |
Fe 62 |
110 |
-13 |
Easy availability of Iron ore at major ports that’s above 106 MnT is helping mill to purchase Iron ore from ports at lower prices than the spot market. Therefore, it sloped down the prices by USD 1/MT.
India
Vessel movement from East Coast of India increased by 30-40% after mid of March. At Paradip port, berthing for vessel is delayed by 2-3 days, whereas Vizag port manual and mechanical waiting period for Iron ore vessel is 3 & 4 days.
Export
Paradip port: SM Niryat & Sino steel are to export 35,000 MT Iron ore in vessel name Chang Shan Hai.
Vizag Port: Around 75,000 MT Iron ore is to be exported by MMTC in vessel name General Guisan.
Haldia port: Rungta & Kalinga to export 20,000 MT ore each from vessel name Chang Shan Hai & Jin Chang.
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