The spot prices of Indian iron ore fines for exports surged by another 1% on July 30th 2009 breaching the psychological barrier of USD100 per tonne CNF Chinese port (USD 99 per tonne to USD 101 per tonne delivered at Tianjin Port).
This is attributed to surge in iron ore fines prices FOB India as well as in ocean freight in the month of July 2009.
The spot prices of India iron ore on FOB basis have soared by almost 20% within July and do not seem to be stopping as the Chinese mills are on a record breaking spree with June steel production touching 50 million tonne likely to culminate in annual production of 550 million tonne.
| Grade | Change | % |
| Fe 63.5/63% | 12 | 19% |
| Fe 63.5/62.5% | 12 | 20% |
| Fe 63/62 % | 12 | 20% |
| Fe 62 / 61% | 12 | 22% |
| Fe 61 / 60 % | 12 | 24% |
| Fe 60/59 % | 11 | 23% |
| Fe 59 / 58 % | 11 | 24% |
| Fe 58 / 57% | 10 | 24% |
FOB levels East Indian port
Change is on July 30th 2009 as compared to July 1st 2009
Change is in USD per tonne
The prices have surpassed the last high on February 10th in all grades.
| Grade | % |
| Fe 63.5/63% | 1% |
| Fe 63.5/62.5% | 4% |
| Fe 63/62 % | 6% |
| Fe 62 / 61% | 3% |
| Fe 61 / 60 % | 7% |
| Fe 60/59 % | 5% |
| Fe 59 / 58 % | 4% |
| Fe 58 / 57% | 6% |
FOB levels East Indian port
Change is on July 30th 2009 as compared to February 10th 2009
Change is in USD per tonne
The prices are also 33% higher than Australian long term iron ore prices with freight costs to China.
The unending imbroglio over benchmark contract prices becoming messier with each passing day, supply shortage and inching BDI the prospects of any pause seems ludicrous. Whether the prices will rise further or not depends on how soon Chinese steel mills announce a long term price deal with overseas miners. Speculation in the market drives the prices up, without a specific market reference as steel mills are muted.
We have also heard of offers and some likely deals at USD 103 per tonne CIF China levels. Which points to possibility of further increase and some market players are now speculating USD 125 levels if the dust does not settle immediately.
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(Sourced from www.steelprices-india.com)
