Spot iron ore market has been the first casualty of a suddenly sinking Chinese domestic market. The recent slew of fatalistic happenings in the market has left an indelible mark on the raw material market.
The recent hike in lending rate by 50 basis points coupled with power rationing has nipped the market sentiments just when it had exhibited signs of the ephemeral revival.
The repetitive hike in lending rates has left most of the mills with less liquidity crippling the buying activity lest they succumb to burgeoning cost.
The tug of war between the buyer and supplier has created an impasse. Whereas the buyers are vying for USD 180 per tonne levels for Fe 63.5/63% the sellers are seem to reluctant to sink below the USD 188- per tonne to USD 190 per tonne.
The stockpile at Chinese port at towering 82 million tonnes coupled with most of the mills having replenished their stocks in the Tangshan region the market is devoid of buying compulsions.
The freight market bulked owing to reduced shipment recently.
Iron ore fines
FO B India
| Grade | Change |
| Fe 63.5/63% | -1 |
| Fe 63.5/62.5% | -1 |
| Fe 63/62 % | -1 |
| Fe 62 / 61% | 0 |
| Fe 61 / 60 % | 0 |
| Fe 60/59 % | 0 |
| Fe 59 / 58 % | 0 |
| Fe 58 / 57% | -1 |
| Fe 57/56 % | 0 |
| Fe 56/55% | 0 |
| Fe 55/54 % | 0 |
| Fe 54/ 53 % | 0 |
| Fe 53/52 % | -1 |
| Fe 52/51 % | -1 |
Change is on May 16th as compared to 13th May 2011
In USD per tonne
Nonetheless some of the mitigating factors like the banning of export from the Paradip port and the onset of monsoon will certainly curtail shipments from India which might just chip in to keep the market afloat in the medium term
To know exact levels subscribe to “Iron Ore Services” of www.steelprices-india.com.
Subscription charges for 12 months access
| Currency | Single | 2-5 | 6-12 | 13-25 | 26-40 | 40-60 |
| INR | 50,000 | 100,000 | 160,000 | 340,000 | 500,000 | 670,000 |
| USD | 1,300 | 2,500 | 4,000 | 8,000 | 12,000 | 16,000 |
How to subscribe
1. Register at www.steelprices-india.com and pay on line or ask for invoice
2. Send mail to admin@steelprices-india.com.
3. Call at 0091-124-3007891/2/3
(Sourced from www.steelprices-india.com)
