Global iron ore prices have moved up sharply by USD 11/MT in a day time. On 07 Mar’16, global iron ore prices have assessed at USD 62.6 /MT, CFR China which was seen at USD 52/MT, CFR China on Friday (04 Mar’16).
Upon sharp gain in Chinese steel prices by 20% over the weekend, iron ore prices are up by USD 11/MT in a day time. Surging steel market had drifted prices to reach at USD 62/MT. Spot billet prices also rose by around USD 40/MT. Prices have gained sharply as the forward booking of the raw material have become default and their is production cut by few Chinese mills, rising domestic steel prices further.
Indian iron ore exporters have turn active in line with sharp increase in global iron ore prices.
- Currently, export prices for fines Fe 58/57 iron ore was seen at USD 42-44/MT, FoB India where export duty is zero. However, last week the prices for same (fines Fe 58/57) was witnessed at USD 34/MT, FoB India.
- Upon sudden increase in global prices, the market have become so volatile that currently the expected buying for Fe 57% fines would come around at INR 18,00/MT FoR, Vizag Port.
Although, there is sharp increase in iron ore prices, still market participates is in dilemma whether prices at such level will sustain or this sharp gain in prices is temporary.
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