Low-grade iron ore fines export prices up on China demand

Indian low-grade iron ore fines prices gained by $2/t w-o-w amid active deal-making. SteelMint assessed the Fe 58/57% fines at $72-73/t, CFR China.

Iron ore demand remains robust in China while global iron ore supplies remain tight.

Low-grade fines tracked gains in the closely-tracked Fe 62% CFR China price, which gained by $3.45/t on Wednesday to $106.9/t. The 62% fines have gained over the past month fuelled by demand from Chinese mills ramping up steel output after coronavirus-related shutdowns ended in April and tighter supplies of ore from Brazil and South Africa, where coronavirus-related restrictions have affected mining and logistics operations.

Indian low-grade iron ore exports could fall over the next few months as the Odisha government has capped the number of truck trips large iron ore producers can make to Paradip and Gopalpur ports, which contribute around 60% in iron ore exports shipments from India.

Recent deals reported-:

-- An Odisha miner concluded the deal for a vessel of the composite cargo of low-grade and high-grade fines this week. Cargo for fines (Fe 57%) deal was concluded at around $73/t, CFR China, and for Fe 63.5% fines at $105/t CFR, China.

-- Another miner from Odisha also concluded a deal for 55,000t low-grade (Fe 58/57%) at around $71-72/t, CFR China for July shipment recently.

-- A trader concluded a deal for Odisha-origin low-grade fines for export at around $71-72/t, CFR China. The material shipment is scheduled to be shipped this month.