India: Goa Iron Ore Export Realizations Narrowed Down

Indian market sentiments reflect that from the beginning of June till the end of September the mining activity in Goa will be suspended halting the exports for next few months. As per the SteelMint statistics Goa Export Realizations are narrowed down over the falling spot iron ore prices.

The demand for Indian ore has improved a bit as of now due to the mix of scrap and low grade ore process. However, the Indian west coast have stopped the exports recently, the delivery from east ports does not pay much as spot iron ore prices in China have come down.

Ex-mines realization for Goa Iron Ore Exporters:

1 USD=64.4 INR
Source: SteelMint Research

According to the some market reports spot iron ore prices were down to a near 12-month low on on 13th June as oversupply and cheaper feeder like scrap that pressurized the prices. The prices closed USD 53/MT  CFR China,  on 13th June for fines Fe (62%).

The month of June has had a shallow beginning for the key steel making raw material. The oversupply on the Chinese ports and the demand for the same has been playing hide and sick for over the few months in a row now.

Meanwhile the spot iron ore prices have seen a bout of slight optimisms that lasted for a day or two resulting from an increased demand under lower prices. The sellers have halted the offers whereas buyers intended to replenish the stocks to use the advantage of lowered prices.

The Chinese market trends suggest that the spot iron ore prices going to be under pressure as the high availability of the material on the ports is reported at 140.05 million tons on June 9, 2017 due to which buyers are ignoring the seaborne cargoes  and preferring the to buy from the ports. Moreover as Q2 close nears the funds with mills are tightened for new purchases as the priority for them would be the repayments of the quarterly debt.

The high level of inventory seems to keep affecting the global spot iron ore prices in negative for the next few months.