Wednesday, June 08,
Spot iron ore prices in China move up on lower availability of cargoes with higher Fe content.
Indian exporters quote Fe 63.5/63 at $ 181-182/MT as against $175-176/MT in the last week.
The Forward swaps market also extended gains suggesting investors are looking to more gains in spot prices. June contract on the Singapore Exchange rose by 75 cents to reach $173.75/MT.
Supply constraints from India
Supply from Goa is expected to lower down due to monsoons. Iron ore exports from Mormugao port already fell by 11.8 in April-May due to a four-fold rise in export tax and local transportation issues. So, now with the advent of monsoons exports are likely to fall further.
However, exports from Karnataka is expected to resume within 10-15 days but traders are still not sure about it and expect some more delay in resuming of exports.
The state government terms the delay in exports to be procedural. Whereas, iron ore traders say the delay in resuming exports is due to a political battle.
“Political reasons could delay the overseas sales and the iron ore exports could only pick up from October, once the four-month long rainy season gets over in September”, said traders in Karnataka.
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