Spot prices of Indian iron ore fines continued to increase last week both on domestic as well as export fronts.
Restricted supply due to Indian iron ore mess is touted to be the reason behind rise in domestic levels as this is one of the reasons behind abnormal surge in sponge iron and long product price sin last 3 weeks in India.
On the other hand, increased demand of iron ore from Chinese mills due to increased production levels supported by improving domestic steel prices is the min reason behind surge in Indian export levels.
Indian government has further compounded the situation by raising the export duty on iron ore lumps to 10% from 5% and on iron ore fines to 5% from nil. This, about USD 3 per tonne to USD 4 per tonne tax is likely to push up FOB prices further as Chinese mills are desperately looking to buy on spot basis to match their increased appetite.
In addition, raising of forecast of hike in benchmark price settlement by some of banks and market players is supporting higher prices.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | 2% |
| Fe 63.5/62.5% | 2% |
| Fe 63/62% | 2% |
| Fe 62/61% | 3% |
| Fe 61/60% | 1% |
| Fe 60/59 % | 1% |
| Fe 59/58 % | 2% |
| Fe 58/57% | 3% |
| Fe 57/56 % | 2% |
| Fe 56/55% | 2% |
| Fe 55/54 % | 2% |
| Fe 54/ 53 % | 4% |
| Fe 53/52 % | 2% |
| Fe 52/51 % | 3% |
Change is on December 25th as compared to December 18th 2009
Iron ore
EX Mine Barbil
| Product | Grade | Size | Change |
| Iron ore - BF | Fe 65% | 10-40 | 10% |
| IOS-Primary | Fe 63% | 5-18 | 10% |
| IOS � Secondary | BF | - | 12% |
| Iron ore - Fines | Fe 63% | Fines | 0% |
Change is on December 25th as compared to December 18th 2009
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(Sourced from www.steelprices-india.com)
