Iron ore prices continue to follow the similar trend that began at the start of the week. Minor fluctuations amid slender trades marked the day in the market, the prices were unchanged at USD 82/MT CFR for fines (62%).
As the prevailing demand for the local concentrate have put pressure on high grade material, a low grade material demand too is feeling the heat, especially for Indian low grade iron ore, sellers had to further increase the discounts.
The current demand is reasonably tightened up for low grade ore in China, as the record high inventories have altered buyers’ mindset to postpone the deals, when the option of buying local concentrate is easily available for them. To keep up with the pace Indian sellers had to widen the discounts to 45% from 40% earlier.
FOB prices 57 grade fines are assessed at around USD 31-32/MT, and CNF at around USD 42/MT CFR China.
Indian iron ore exports in Mar’17(till 20 Mar’17) stood at 2.49 MnT. Around 0.94 MnT iron ore export vessels were seen at anchorage or expected in Mar’17. Thus, in Mar’17 Indian iron ore exports are likely to remain at around 3.43 MnT. From Apr-Feb’17 India has exported nearly 20.2 MnT iron ore. Iron ore exports from India have seen a tremendous increase this fiscal against 6 MnT in FY16.
Global iron ore market is still prone to downward turn amid subtle futures as buyers expect some favorable changes near future.
Billet
Billet was traded at 3,130 Yuan (USD 454/MT) including VAT, up 10 Yuan (USD 1.50/MT) from Wednesday.
Dalian Commodity Exchange
Closed at 559 Yuan (USD 81/MT) down from earlier close by 12 Yuan (USD 1.70/MT)
Shanghai Futures Exchange
Rebar futures contract closed at 3,142 Yuan (USD 456/MT) today, down 27 Yuan (USD 4/MT) from Wednesday.
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