The iron ore market has remained firm and shown gradual improvement during October. A growth of 8% in October amidst gloom in the finished products is the only silver lining in the cloud.
1. Iron ore exports from India, the world''s third largest supplier, fell by 47.3% to 3.03 million tonnes YoY. The drop has not been surprising in the backdrop of turbulence in the Indian ore sector. A severe clampdown in mining operations culminating in ban of export from Karnataka has curtailed the supply.
2. A recent announcement by Rio about USD 3.1 billion expansion plan to lift iron ore output in Australia''s Pilbara region by more than 28 % annually from 2013 and BHP said demand from emerging economies should remain strong after reporting a 6 % rise in quarterly output has given a thrust in otherwise dreary market.
3. Post National Holiday flurry led by Hebei powerhouse resurged after having achieved emission cut targets. The production picked up leading to ameliorated demand of iron ore.
The market is expected to remain firm in the short term as stock replenishment will pick up in the penultimate months before winter. However transient hiccups cannot be ruled out given the chameleon tenor of the market based on speculation rather than demand.
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