In conversation with Mr. Amir Ali Akbari – one of the major iron ore exporters from Iran, SteelMint learned that Iran is emerging as one of the world’s major iron ore exporters and primarily exports high grade lump and fines to countries majorly China.
He said “Due to around USD 12/MT drop in iron ore prices in May’17 , most of governmental mines in Iran from Jun’17 started to sell in the form of formal bids , limited Bids and through Bourse ( stock market with the purpose of buying/selling of securities & commodities).
No need to say that it was the sign of exiting out of USD 94/MT, CFR China price shock condition which was seen in end of Feb’17. In mid June we experienced price level down to less than USD 55/MT, CFR China. But steel market was performing well, he added further.
”In this situation dealers and businessmen tried to protect and save their markets and reduce highly increased profit margin of steel mills.Only within 2 days prices increased USD 6/MT that showed effect of concentration of main traders and dealers on selling cargoes instead of existing stocks in Chinese ports”, Mr Akbari added.
At the time being volume of iron ore export increased last month and I am hopeful with the perspective of more stability and small increase in price , more active and dynamic market for short term, he added.
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