Soaring global iron ore prices, abolished export duty on low grade ore as well as rising demand in China have culminated Indian iron ore exporters to cherish exports. As parity of low grade iron ore exports increased with above mentioned factors, Indian exporters turned active in the market.
Current export offers for Indian iron ore Fe 58/57 fines are hovering at USD 41-42/MT FoB, India and that of USD 48-49/MT, CFR China.The expected buying by Indian exporters for Fe 57/58 fines would come around at INR 2,100-2,200/MT FoR, East Coast. Few trade deals seen at such prices.
Starting Apr’16, there were few export shipments seen to China. As per the customs data, the low grade fines (Fe 57%) export shipments which were exported last week were concluded in the range of USD 35-41/MT, CFR China. Vedanta, Royalline Resources, Fermento Resources, Bagadiya Brothers etc exported Fe 57% iron ore fines from Goa containing moisture less than 9-12%.
Global iron ore prices have witnessed a sharp increase and stood at USD 67/MT, CFR China on 22 Apr’16. Surging iron ore prices is result of sharp increase in Chinese spot steel prices. Upon increased prices, Indian iron ore exporters have also become optimistic.
Rising global iron ore prices in China and pick up in seasonal iron ore demand from Chinese steel makers will further boost low grade iron ore exports from Goa.
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