Spot iron ore prices in Chinese market continue to remain strong on rising steel prices in domestic market. Shanghai re-bar hits 3-months high.
Spot iron ore prices in Chinese market continue to find strength on improving demand and low inventories at the port. Two cargoes of Australian fines with 62% iron content were sold on the globalORE platform at above benchmark rates. One 90,000 tonne cargo was sold at USD 132.70 and another 120,000 tonne shipment went through at USD 133/tonne.
Indian Exporters offer More Cargoes
Indian exporters continue to offer more cargoes to Chinese buyers primarily due to better realization (on weakening Rupee). Another reason sought is cheaper truck freight to Paradip port, which has made exports feasible from the eastern Indian coast. Offers from Indian exporters have also gone up by USD 1-2 per tonne. Currently, Fe 63% are being offered in the range of USD 131/tonne CFR China main port and Fe 61% being offered at around USD 123/tonne CFR China.
Exporters Anticipate Cut in Export Duty
With mining and exporters lobby trying hard to get a cut in export duty on iron ore from India, some are quite sure that it will be reduced to 15-20% in the near term. However, some believe that steel makers have strictly opposed in any cut in iron ore, justifying that any cut will raise iron ore prices in domestic market.
Mill Scale Offers
With rising shipments of iron ore, Indian exporters have also managed to conclude quite a few deals for Mill Scale. Last vessel was loaded from the Indian east coast on 5th August of 30,000 tonnes. Another vessel of 25,000 tonnes is lined up at Vizag port, to be loaded on 9th August. Current offers are heard to have gone up to USD 124-125 per tonne on CFR China basis. (previously USD 122-123 per tonne).
Note: There is no export duty on mill scale and no differential freight charges from the railway.
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