Indian iron ore export prices dipped on expected line last week as the Chinese steel market continues to grovel in the dust as the demand from mills diminishes.
The slew of debilitating factors recently include
1. Hike in deposit rate by 50 basis points on June 14th has dented the buying leading to drop in finished steel prices in China
2. Production cut imposed in China owing to power rationing
3. Arrival of monsoon period of low steel demand in China
4. Chinese steel majors like BaoSteel, Tangshan etc have already reduced July prices giving a pessimistic outlook
It is noteworthy that the stockpiles at the Chinese ports have bloated to dizzying levels at 93 million tonne indicative of very poor off take by the mills.
It is learnt that the traders are stuck in an island with burgeoning stockpiles on one hand and the dearer cargoes in the pipeline to be off loaded. It apprehended that once the prices slide steeply the traders would like to dump the cargoes and get away thereby triggering a catastrophe.
Iron ore fines
FOB India
| Grade | Change |
| Fe 63.5/63% | -1% |
| Fe 63.5/62.5% | -1% |
| Fe 63/62% | -1% |
| Fe 62/61% | -1% |
| Fe 61/60% | -1% |
| Fe 60/59 % | -1% |
| Fe 59/58 % | -2% |
| Fe 58/57% | -2% |
| Fe 57/56 % | -2% |
| Fe 56/55% | -2% |
| Fe 55/54 % | -2% |
| Fe 54/ 53 % | -2% |
| Fe 53/52 % | -3% |
| Fe 52/51 % | -3% |
Change is on July 1st as compared to 24th June 2011
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