Global iron ore prices are assessed at USD 42.1/MT CFR China on 19 Jan’16. Prices have increased from three consecutive days, but this gain is temporary as because of the upcoming Chinese Lunar New Year holidays in February, Chinese steel mills are restocking the sufficient raw material.Also, Shanghai rebar prices have dropped down on weak demand at USD 279.6/MT.
There were few trades seen today. Australian Rio Tinto, the second largest iron ore miner, sold 170,000 MT for Fe 62.5% Pilbara fines at USD 41.1/MT CFR China through tender.
On the other hand, recently BHP Billiton has published its first six month operational review of Aus. FY16, in which they have mentioned that they don’t expect any recovery in iron ore prices in the next few years, as China is surrounded by reinforced bearish sentiments which are oversupply of raw material as well as slow economic growth.
In addition, BHP Billiton, have also trimmed its production guidance by 10 MnT, according to its operational review report published today. However, a bit relief in terms of oversupply but the condition is so worst right now that this production cut will not be helpful.
Meanwhile from India’s prospective, if we talk about iron ore exports to China from India, despite falling global iron ore prices and capacity expansions by Australia and Brazil, viability of iron ore exports from India is not that beneficial. Inorder to compensate with the current global market sentiments, Indian miners and exporters from Goa, seeks cut in export duty of high grade fines and lumps.
Leave a Reply