Indian Low Grade Iron Ore Fines Export Prices Pick Up in Recent Deals to China

Indian low-grade iron ore fines export market regained momentum this week with various deals being reported. Indian low-grade iron ore fines assessment has increased this week to USD 57-59/MT, CFR China as against last week's assessment at USD 54-55/MT, CFR China. As per the sources Chinese mills are actively booking material for Mar/April shipments, in order to maintain their margins.

As per the sources, Odisha based miners have concluded low-grade iron ore fines (Fe 58/57%) export deals this week at around USD 57-59/MT, CFR China for March/April shipment.

Another trader from Odisha has also booked one vessel to China at USD 59-60/MT CFR China during this week.

As per the reports, amid shrinking steel margins of Chinese mills turned interest towards low-grade ore for cost-effectiveness.

Earlier, the emanated Coronavirus outbreak in China desiccates the seaborne iron ore trade. Still, a substantial leeway of iron ore trade is a matter of concern.

Iron ore port inventories in China fall -: As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports dropped to 128.6 MnT as of 20th Feb'20 against 130.65 MnT a week before.

Spot iron ore prices increased USD 4/MT W-o-W-: Chinese spot iron ore prices increased by USD 4/MT this week to USD 92/MT, CFR China against USD 88/MT, CFR China a week before.