After downtrend for almost 6 weeks, iron ore export market finally saw light of the day with a quantum jump of 2% in the last week on increased enquiries by mills culminating in surge of bids and offers in the hitherto quite marketplace.
As per reports, the market is back in action with increased transactions supported by active interests from traders.
Simmering of the current surge was being felt for a week with the mills running low on inventory. It is learnt the post Spring Festival the transaction had been low due to exorbitant levels. The finished market being in shambles and mills groaning under surmounting inventory the need for iron ore was less.
However the crude steel production in China touching a record 1.94 million tonnes a day in the middle ten days of March jump of 2.18% over February, the craving for stock replenishment became acute. More so in the last week the domestic price levels have shown significant improvement mainly impelled by boost of steel futures market and steel traders attempt to avoid losses as steel market price is lower than mill price.
The icing on the cake being the inevitable opening of the seasonal demand has put mills in preparatory mode thereby ameliorating production.
All the fundamentals aligned for a revival in the ore market a lot will depend on the demand growth in finished steel expected as the mercury rises. Moreover with the judgment on export of higher grade iron ore from Karnataka due on 4th April a possible revival will improve the supply of iron ore leading to a balancing effect.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | 2% |
| Fe 63.5/62.5% | 1% |
| Fe 63/62% | 2% |
| Fe 62/61% | 1% |
| Fe 61/60% | 1% |
| Fe 60/59 % | 2% |
| Fe 59/58 % | 2% |
| Fe 58/57% | 4% |
| Fe 57/56 % | 4% |
| Fe 56/55% | 4% |
| Fe 55/54 % | 5% |
| Fe 54/ 53 % | 4% |
| Fe 53/52 % | 3% |
| Fe 52/51 % | 3% |
Change is on April 1st as compared to 25th Mar 2011
With the impending gradual shift form benchmark pricing based long term contracts to spot cargos, it has become more vital for both sellers as well as buyers to precisely monitor the daily movements of iron ore spot prices to keep tab on trends and spot opportunities.
This has galvanized us to start reporting domestic prices of iron ore at Barbil & Bellary and export prices on FOB Indian port.
Domestic iron ore spot pricing information updated 5 days a week whereas export spot prices FOB Indian port as and when they change
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