Indian Low-Grade Iron Ore Fines Export Price Down Amid Fall in Global Prices

SteelMint in conversation with market participants learned that bids for Indian low-grade fines from China have come down this week following the global price drop. Low-grade fines (Fe 57/58) assessment of SteelMint moved down to around USD 55-58/MT CFR China, as against the last assessment at USD 60-61/MT, CFR China.

As per the market participants, Indian miners and exporters are getting lower bids from China at around USD 55/MT, CFR China levels and owing to the disparity in bids & offers, trade activities remained silent.

Iron ore demand in China has witnessed a steady fall amid rising inventory stocks at port and production curbs. China's top steelmaking city of Tangshan this week has issued second-level pollution alert which will limit production further.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports increased to 131.1 MnT as compared to 129.95 MnT last weekend. The iron ore inventory reached almost 5 months high as the level was last witnessed towards mid-May at 131.7 MnT.

Spot iron ore prices down sharply W-o-W-: Chinese spot iron ore fines prices (Fe 62% fines) yesterday (i.e 18th Oct'19) at USD 85.7/MT, CFR China as against USD 93/MT, CFR China towards last weekend.