August 05,
The Iron ore fines prices rise to $153 today but the demand from China is low due to:
· Increase in domestic Iron ore production in China.
· The China Iron & Steel Association (CISA) reducing the number of qualified Importers.
· Production cut backs in Steel mills of China.
Though the prices are rising but it is not going to continue long as the prices are expected to fall in September due to the falling demand in China.
It seems Chinese buyers have lost interest in Indian cargoes and have changed their focus to Australian PB fines and Brazil fines cargos after the Karnataka Government’s ban on exports.
The mining companies are losing lakhs of rupees as charges for holding up ships at the ports due to the ban. With Iron ore lying idle at ports, there is both Forex as well as freight loss.
Leave a Reply