Indian Low-Grade Iron Ore Fines Export Demand Remain Low Amid Strict Production Cuts

Indian low-grade iron ore fines (Fe 58/57%) export price stable at around USD 58-60/MT, CFR China, in line with last week's assessment. Chinese spot iron ore prices opened up this week at USD 90.50/MT, CFR China and increased to USD 93.9/MT, CFR China towards weekend amid higher steel prices and also mills started restocking from ports.

As per the sources, an Odisha based major merchant miner one shipment for low-grade iron ore (57/58%) to China at around USD 59-60/MT CFR, China for Jan'20 shipment.

No other deals were heard this week. As per the sources, Low-grade iron ore demand remains low following winter production curbs. Since December 19, steel mills in East China's Shandong province and North China's Shanxi province have been forced to obey strict production curbs because of heavy air pollution. Upcoming New Year holidays are likely to keep trade activities on the lower side.

As per mysteel data, Iron ore inventory at major Chinese ports dropped to 125 MnT this week, down 1.8 MnT against the previous week. The stocks at Chinese mills across all regions dropped amid high discharge rates to stock ahead of holidays starting from Jan 24.