Seaborne Iron ore prices further correct by USD 2-3/MT on index as well as in market to hit more than 5-year low. Australian Newman fines (Fe 62%) was offered at USD 72/MT without bids. On globalORE, Fe 62% PB fines for December delivery was bid at USD 68/MT. A Brazilian tender for Fe 62.23% fines concluded at below USD 69/MT. Fear of oversupply in China’s property market have fueled further bearishness in the market.
Indian Iron Ore Prices under Pressure
Indian domestic Iron ore prices, which have been rising owing to short supply, are likely to be in pressure on the backdrop of falling global prices. Indian imports have hit an all time high of 5 MnT during April- October, 2014 since the Supreme Court suspended mining operations in Odisha & Jharkhand.
“Indian Iron ore prices should fall due to falling global prices. Merchant miners have been increasing prices since suspension. More small and mid sized companies will go for imports,” said a steelmaker based in southern region.
|
Particular |
Size /Grade |
Delivery |
Price |
W-o-W Change |
M-o-M Change |
|
Iron ore fines |
Fe 63.5/63% |
CFR China |
72** |
-4 |
-9 |
|
Iron ore fines |
Fe 63% |
FoR Siding Barbil |
3,900 |
+150 |
+700 |
|
Iron ore lump |
Fe 63% (5-18 mm) |
FoR Siding Barbil |
7,400 |
+150 |
+300 |
|
Iron ore lump |
Fe 65% (6-40 mm) |
NMDC |
5,060 |
– |
-200 |
|
Iron ore fines |
Fe 60.5% |
Karnataka E-auction |
3,175* |
– |
– |
Prices in INR/MT; as per loaded to wagons & including royalty
*including royalty 15% & FDT 12%
** Prices in USD/MT
Source: SteelMint Research
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