The sudden rise in global iron ore prices has turned Indian iron ore exporters active in the export market. Global iron ore prices are currently at 2-years high levels at $77/MT, CFR China due to sudden rise in coking coal prices.
Indian east cost based iron ore exporters namely Rungta Mines, Essel Mining etc are already moving decent quantities of low grade iron ore to ports. Indian exporters turned active due to healthy export margins. It is to be noted that, in Nov’16 (till 25 Nov’16), Rungta Mines moved around 14 rakes to Dhamra, Paradip and Haldia Port. Bagadiya Brothers moved 7 rakes to Dharma Port etc.
On the other hand, west coast based exporters namely Vedanta, Royal line Resources, Fomento Resources etc have started exporting low grade to China since Oct’16, after a time span of around 2 months.
As per index, the current offers for Fe 57/58% Indian iron ore fines would come around $ 49-51/MT, FoB India and $57-59/MT, CFR China including all the cost i.e.hedging, freight, logistics etc. But, as Chinese buyers prefer high grade ore over low-grade, they demand heavy discount upto 25-30% on Indian iron ore against index.
So, currently the workable export prices for Indian iron ore would come around $40-44/MT, FoB India. 
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