Low buying interest of Chinese mills has created pressure on Seaborne Iron ore fines prices in China.

Fe 63.5/63 fines prices have fallen by USD 1/MT to USD 134/MT CFR China.

“There is no specific reason for Iron ore downturn, probably now is low season in China as winters result in lower demand and another reason is some small sized plants shutting down over environmental issues.

If we see supply v/s demand in long term, reasonable price would be at USD 110-130/MT, and it might keep going down in coming years” said Mr Hudson a Chinese Iron ore importer based in Beijing.

Currently, PB fines are offered at RMB 890-910/MT.  PB Fines, Fe 61.5 were at USD 132/MT CFR China. Billet price stays at RMB 3,010/MT (EXW; VAT included) in Tangshan. Most traded rebar contract for May delivery opens at RMB 3,651/MT, down by RMB 1/MT from previous close

India

Serajuddin mines has resumed mining operation after October, with a permission granted to mine upto 15MnT, increases its Iron ore fines & lumps rates by INR760/MT and INR510/MT respectively. Currently it offers stands at INR 2,620/MT and INR 5,620/MT (prices FOR Siding)

As per Steelmint data 80,000 MT of Iron ore fines has been exported from Haldia port between 01 – 20 Dec, 2013.

Sources said, “The freight rates have stabilized. Single port loading of Supramax vessel are at USD 13.5-14 from Vizag /Paradip port to China”.

Trade wise

On 20 Dec, vessel named Tanager Bulker of SM Niryat  traced at  Paradip port, is to carry 55,000 MT Iron ore fines to China. Vessel named Vishva Vinay of Othello/ Auro will carry 27,000 MT of fines from Haldia Port.

1 USD = RMB 6.1193