Indian low grade iron ore fines (Fe 58% and below) is currently attracting a higher discount up to 40% against Fe 62% index.
Discount has been consecutively increased since long time owing to less demand for Indian fines among Chinese buyers.
As global iron ore prices has been moved up to USD 92/MT, CFR China due to strong demand for high-grade iron ore among Chinese buyers, at the same time low grade iron ore fines are selling at higher discounts.
Currently, Indian fines for Fe 58% are offered below USD 50-51/MT, CFR China, which is equivalent to USD 42-43/MT, FoB India considering USD 8-9/MT freight.
Notably, exports of low grade fines (below Fe 58%) are viable from India as it does not attract any export duty.Global iron ore prices have reached to such level that, exports of high grade iron ore from India (above 58%), which attracts an export duty of around 30% has become viable for Indian exporters.
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