India’s Low grade iron ore fines (Fe 58% and below) continue to attract a higher discount of 40-41% against Fe 62% index in Chinese market.
Discount has been continuously increased since long owing to less demand for low grade iron ore fines in China which continuous to remain low.
Currently, low grade iron ore fines (Fe 58% and below) are offered at USD 47-48/MT, CFR China, which is equivalent to USD 38-39/MT, FoB India. Notably, freight from India to China has increased. Freight from east coast is around USD 9.5/MT and that of west coast is around USD 11/MT.
Indian iron ore exports have gained momentum as it does not attract export duty. In FY17 (till Feb’17), India has exported 20.2 MnT iron ore which is likely to be around 22-23 MT in FY17.
Leave a Reply