Saturday, March 12,
Indian iron ore export prices have fallen by up to 10-12% in the past month due to low demand from main buyer China and japanese quake adding problems..*
“There is an oversupply situation in the market and a lot of [iron ore] stocks at the ports,” said a senior executive at a Goa-based miner and exporter.
The export price of ore with 58% iron has dropped to about $140 a metric ton, including cost and freight, from $168 a ton in February, while the price of ore with 50% iron has halved to $40 a ton, he said.
Poor demand from China, a proposed increase in export tax by the Indian government, and a hike in railway freight rates this month will stifle supplies from the world’s third-largest supplier by volume. India usually exports nearly half of its iron ore production to China.
“Prices had gone into almost a free fall and there are very few inquiries from overseas buyers,” said Glenn Kalvampara, secretary of the Goa Mineral Ore Exporters Association.
The earthquake in Japan may ease the soaring iron-ore prices in the near term.Japanese Steel Mills (JSM), which account for about 10 per cent of the world steel production, imports all of its raw materials. While India caters to some of JSM’s iron ore requirements, coal is mostly supplied by Australian miners.
The steel industry believes raw material prices will ease if Japan fails to procure its supply because the market will not be able to absorb it. The fini-shed steel product sector, however, might not be impacted.
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