Spot Iron ore prices in Chinese market that touched a 3 year low at USD 89/MT for Fe 62% on CFR China basis, is resisting to fall further. AS bids have gone up to USD 90/MT, market participants expects Iron ore prices should be stable at these levels.
Australian miner BHP sold Australian Fe 62% Fines at about USD 91/MT CFR China. Chinese traders feel prices may edge up further as buying interest seems coming back in the market.
Indian Exports still not Viable
Spot Iron ore prices in Chinese market, which are fallen to 3-year low has made Indian export non-viable from quite some time. Indian Export cost are way too high than global prices.
“We cannot think of export at these price levels. We will not be able to cover even the logistic cost. There are no export offers from India, nor any queries from Chinese buyers,” said an exporter based in Kolkata, West Bengal.
Indian Iron Ore Export down by 30 % in May, 2014 from Previous Month
Indian export dropped to about 0.7 MnT in the month of May against 1 MnT in the month of April, 2014. According to trade sources, last shipment of Fe 50-51% from Goa was shipped in the month of June, 2014 at around USD 28-30/MT FOB basis.
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