In conversation with Mr. Amir Ali Akbari – one of the major iron ore exporters from Iran, SteelMint learned that Iran iron ore exporters have turned active post increase in spot iron ore prices in China.
Below are the excerpts on SteelMint’s interview with him on current market scenario.
1. Fe 62% fines index has crossed USD 70/MT, CFR China. What do you think is the major reason behind the price hike?
In line with last week’s anticipation on rising iron ore prices, ion ore index rose this week to over USD 70/MT and I expect upper prices in mines, cost of local transport and freights as well.
The major Chinese steel city – Tangshan announced mills shutdown with an aim to curb with problems illegal production and overcapacity. Today it was announced by city’s municipal government that the target of reducing nearly 10.06 MnT crude steel capacity is in progress and would be reached till next 2 months. Statistics say that 54% of capacity cuts announced is already done and remaining 46% is to be done within next 60 days.
Steel capacity cut enforcement taking place ahead of time announced spurred the prices.
Increasing steel prices may further drive up iron ore prices at Chinese ports.
2. How are the sentiments prevailing in Iran iron ore export market ? Have Iran based exporters started actively booking vessels in last couple of weeks?
Number of cargoes in queue for iron ore loading is definitely increasing and I expect slow increase in the same in the near term.
Prevailing monsoon season in India and request for on board cargoes is causing increase in prices which has motivated Iranian traders to raise premium for concentrate.
3. What are current export prices (FoB Iran basis) for iron ore fines (Fe 60%) from Sangan region of Iran?
Presently, trade activities involving Fe 62% cargo in Sangan area are being settled close to index after deducting cost of local transport and vessel freight.
Normal cargo is about USD 45-50/MT, FoB Iran. However prices vary as per miners and quantity booked.
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