December 02, 2008

Indian iron ore spot prices have probably hit the roof

China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on August 27th 2007.

Delivery	Price	Change
FOB Indian port	USD 100- USD 103	USD 8
CIF Chinese port	USD 135- USD 138	USD 13

The change is with respect to prices posted on August 20th 2007

The movement of CCCM released prices over last one year is as under

Issuance Date	FOB	CIF
2007.08.27	100-103	135-138
2007.08.20	92-95	122-125
2007.08.13	87-89	118-120
2007.07.30	80-82	108-110
2007.07.02	75-76	103-104
2007.06.05	72-73	100-101
2007.05.08	68-70	95-96
2007.03.05	63-64	85-86
2007.02.05	59-60	81-82
2007.01.08	56-57	76-77
2006.12.5	52-55	73-75
2006.11.06	53-54	72-73
2006.10.16	52-54	71-73
2006.09.04	53-54	71-72
2006.08.14	52-53	68-70

In USD

The increase in prices during last 12 months is inching towards 100%, but the most steep has been witnessed during last week

Period	FOB	CIF
In last week	8.6%	10.5%
In August'07	25.3%	25.2%
In 2007	79.6%	78.4%
In last 12 months	94.4%	97.8%

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices and the reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.