July 28,
In the last one week, Iron ore fines prices have witnessed a sharp upside.
The CNF prices for the grade of Fe 63 have moved from $124/MT to $140/MT in two weeks time which is an increase of over 12 per cent but the volumes continue to fall after Chinese steel prices corrected downwards earlier this week.
One of the reasons behind this price surge can be the tight supplies of the ingredient because of the monsoon season. The monsoon brings heavy rains that halt exports of the powdery iron ore fines which tend to absorb moisture and disrupt the transport of iron ore.
Besides this, the recent news about the ban of Iron ore exports from 10 ports of Karnataka as well as the on going talk regarding the ban on Iron ore transport permits can boost the prices further.. We feel the ban on transport permits will also have an effect on the fines supplies and as a result its prices. .
Commenting on such a move by the Karnataka Government Mr Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel said “The unexpected ban of Iron ore exports from Karnataka may tarnish India’s image overseas.”
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