Spot iron ore prices in Chinese market remained stable before coming holiday (May Day). Trading volumes have been thin, although trader do not see sharp fall from these levels. Australian main stream cargo PB fines of grade 61.5% hovers in the range of $133-133.5/t CFR China.
China iron and steel association shows concern over crude steel capacity, according to officials, current installed capacity has enough to accommodate steel consumption in China.
Indian Domestic Market
Indian iron ore market remains unchanged with exporters cutting down their purchase prices owing to falling spot iron ore prices in China.Above this, with government's proposal on raising royalty on iron ore by 5% seems to be a concern for the industry.
A trader reported to be offering 8,000 tonnes of 59/58% Fe iron fines at around Rs 3,300-3,350/t (ready stock at Vizag port) but failed to cheer any interest from exporters.
Miners based in Katni (M.P.), central India are offering Fe 58% fines at Rs 1,500/t and Fe 57% at RS 1,400/t (royalty paid) . Tentative freight to Vizag port is around Rs 2,000-2,200/t
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