India: Low Grade Iron Ore Fines Export Price Drop Following Global Decline

Chinese mills have further reduced bids for India low grade iron ore fines, SteelMint learned from its sources. With spot iron ore fines index hitting 9-month low, bids for Indian fines have also come down. Assessment for Indian low grade (Fe 57%) iron ore fines prices have dropped to around USD 52-54/MT, CFR China this week as against last assessment at 53-55/MT CFR China last week.

This week market for Indian iron ore fines export was reported silent on sharp price drop. A week back, an Odisha trader was heard to have concluded 60,000 MT fines (Fe 57%) export deal at around USD 55/MT, CFR China.

The drop in prices is witnessed amid falling global iron ore prices. Spot iron ore fines ( Fe 62%) prices witnessed at USD 79.90/MT, CFR China assessed yesterday (8th Nov'19), down 9 months low. The prices were last witnessed towards Jan'19 end. Besides, the rising sintering cuts and approaching winter production curbs have reduced Chinese demand.

The Indian iron ore low grade ore offers are also affected due to easing material supply. World's largest iron ore miner Vale towards early Nov'19, received authorization from the National Mining Agency to resume the operations of the Alegria Mine that had been halted since Mar'19. Authorization allows the restart of approximately 8 MnTPA .

Iron ore inventories at Chinese ports increase : As per data compiled by Steel Home consultancy, iron ore inventory at major Chinese ports this week increased to 131.75 MnT as against 131.65 MnT assessed towards the end of last week.