Indian low grade iron ore fines export prices up in recent deals
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Indian low-grade iron ore fines export prices have increased this week as China's iron ore demand remains robust amid tight supply. SteelMint's weekly assessment for Fe 58/57% fines was $81-82/t CFR China compared with an assessment of $79-81/t CFR China last week.
Deals reported this week -
- A global trading company concluded export deal for two cargoes of Fe 57% fines early this week at $81/t CFR China for Sept shipment.
- Another deal for 55,000t, Fe 57% fines was concluded at $82/t CFR China by trading firm - Indian Thriveni Fines for Sept shipment.
Chinese iron ore price hits 1-year high: Chinese spot iron ore fines prices increased sharply to $122.45/t, CFR China, the highest price since July'19.
An uptick in iron ore demand as some south China mills have resumed operations following closures in last month's floods. Construction activity in south China has also increased post the end of rainy season. Supplies of mainstream medium-grade ores remain tight. Brazilian ore supply has been hobbled by continued logistical and mining disruptions due to coronavirus control measures.
Port congestion in China: The number of iron ore carriers backed up at ports has continued to increase due to adverse weather conditions, restrictions at ports to control the COVID-19 spread and more ships arriving at ports at the same time, said China Iron and Steel Association (CISA). The congestion has prevented ore from being unloaded in a timely manner and disrupted supplies. An official at the Qingdao port in East China's Shandong province confirmed that the measures ports had adopted to contain the virus were the chief cause of congestion at the port.
It seems that Chinese iron ore prices may remain strong in near short term, which may keep Indian fines export prices supported.