The Indian iron ore fines export market slipped again last week mainly due to lack of buying interest from Chinese steel mills.
Iron ore prices, for grades above 61/60, which improved on last week opening by 2% to 3% as some bulk cargoes were concluded, quickly back tracked as Indian miners came back to the market flooding with offers.
The down trend signals that the continued weakness in Chinese domestic prices is playing a bigger role than the positive factors for miners, which include.
1. Curtailed availability from West Coast in incoming rainy season
2. News of more than 20% hike demanded by Big 3 for Q3
Sea freight to China for Handymax vessels from Eats coast is reported to be around USD 25 per DMT
With the impending gradual shift form benchmark pricing based long term contracts to spot cargos, it has become more vital for both sellers as well as buyers to precisely monitor the daily movements of iron ore spot prices to keep tab on trends and spot opportunities. This has galvanized us to start reporting domestic prices of iron ore at Barbil & Bellary and export prices on FOB Indian port.
Domestic iron ore spot pricing information updated 5 days a week whereas export spot prices FOB Indian port as and when they change.