Indian Low Grade Iron Ore Export Prices Stable

SteelMint in conversation with market participants learned low-grade fines (Fe 57/58) export price at around USD 55-57/MT stable W-o-W. However, no major deal was heard to have concluded.

Demand for low grade ore remains low amid rising Chinese production curbs leading to increased preference of for high-grade ore. As a result, iron ore fines prices have picked up this week to 1.5 months high to USD 90.45/MT, CFR China on 25th Nov 2019. However, the prices dropped to USD 87.25/MT, CFR China towards weekend. Besides, the rising steel margins have favored high grade ore over low grade.

However, market participants expect prices to stabilize or increase amid active restocking in China before winters.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped slightly to 129. 4 MnT as against 129.5 MnT assessed towards the end of last week.

Fortescue Metals Group - world's 4th largest iron ore producer increased sub-grade iron ore discount for SSF (super special fines) for Dec'19. SteelMint has learned from the market participants that FMG discount for SSF low-grade fines for the month of Dec'19 is increased to 15% from 12%.