Seaborne iron ore prices in China remained majorly range bound this week and kept hovering between USD 67-70/MT, CFR China for Fe 62% fines. Today index for Fe 62% fines closed below USD 69/MT, CFR China mark.
Amid higher iron ore prices, Iran observed high vessel traffic owing to lined up iron ore vessel cargoes for export.
To understand Iran’s iron ore export market better, SteelMint interviewed Mr. Amir Ali Akbari – one of the major iron ore exporters from Iran. Below are the excerpts of the interview:
1. Heard Iran is planning to impose export duty on iron ore next year. What are your views on this and how do you fell this will impact Iran iron ore export market?
Discussion about levies for iron ore is an ongoing issue and the government is faced with many adherent and opposing groups for supporting steel production cycle. From one side, iron ore exporters claim that they export surplus products, while the other side they are stating that exporting key raw material should be stopped but this opinion needs a series of infrastructure projects to be made operational. So I believe that government can not implement levies or charges for exporting.
2. Any change in vessel freight rates from Iran to China?
Iron ore price growth of 31% during last 3 weeks caused more demand for marine shipment then the price for 55,000 MT vessels increased by USD 0.5.
3. What are current export offers (FoB Iran basis) for Fe 65% concentrate, Hematite (62/61%) and Magnetite (56/55)?
Iran 65% concentrate is being traded according to index with small discount, Hematite 62% index minus USD 3 up to index and magnetite 56% provided that all elements are normal as in the market according to index Fe 58% then deducting charges for purity.
4. How have iron ore export volumes remained in July in comparison with Jun’17?
During July because of increased prices, most of existing cargoes in Iran ports were dealt and now with a glance on shipments lined up in Shahid Rajaee port we can see high traffic and ships demurrage as well. Most of traders loaded their cargoes.
5. Reports suggest that Iran is planning to stop iron ore exports by 2020 in order to cater to domestic demand. What are your views on this?
We need to establish a lot of steel mills in Iran that is ongoing by efforts of President Mr. Hassan Rouhani according to country’s 2021 vision we observe consistency between demand & offers. I hope this will happen but I think a longer period is needed and I believe that for a fair competition between local companies and clear and real prices, the government shall let traders to export.
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