The decline in Indian iron ore prices has been steady in the last 6 weeks due to lack of demand from the Chinese steel manufacturers. Market continues to reel under the twin impact of excess inventory and lack of global demand thereby cajoling the producers to prune production.
Export - East Coast of India
| Grade | Change | % |
| Fe 63.5/63% | 0 | 0% |
| Fe 63.5/62.5% | 0 | 0% |
| Fe 63/62 % | -2 | -4% |
| Fe 62 / 61% | -2 | -4% |
| Fe 61 / 60 % | 0 | 0% |
| Fe 60/59 % | -1 | -2% |
| Fe 59 / 58 % | -1 | -3% |
| Fe 58 / 57% | -1 | -3% |
Change is on March 27th 2009 as compared to March 20th 2009
In USD per tonne
Delivery FOB East coast of India
Steel majors in China are in the midst of hard negotiations with Iron ore suppliers seeking 50% reduction in contractual prices from 2008 levels. They are likely to leverage this factor in arm twisting suppliers to maximize cost reduction.
Iron ore inventory touching at 68 million tones and producers aiming to lower prices by reducing costs to compete internationally revival seems to onerous. Pleaser refer to STT, March 26, 2009 and March 28,2009 ,Indian high grade iron ore FOB spot price slide continues and Indian lower grade iron ore fines FOB prices slide again respectively.
The total Iron ore stocks available at major Chinese Ports has increased by about 8 million tonnes to 67.44 million tonne as on March 27th 2009 as compared to 59.31 million tonnes as on February 27th 2009.
| Total Stockpiles | 67.44 |
| Indian ore | 16.87 |
| Australian ore | 24.47 |
| Brazilian ore | 16.58 |
In million tonnes
On the other hand domestic spot prices of some the iron ore witnessed slight downward movement during last week.
Domestic - Bellary
| Product | Grade | Size | Change | % |
| Iron Ore Calibrate | Fe 65% | 10-40 | 0 | 0 |
| Iron Ore Calibrate | Fe 64% | 10-40 | 50 | -2% |
| Iron Ore Calibrate | Fe 62% | 10-40 | 50 | -3% |
| Iron Ore Calibrate | Fe 60% | 5-20 | 50 | -3% |
| Iron Ore Calibrate | Fe 62% | 5-20 | 0 | 0% |
| Iron ore - Fines | Fe 63% | Fines | 0 | 0% |
Change is on March 27th 2009 as compared to March 20th 2009
In INR per tonne
Delivery Ex Mine
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(Sourced from www.steelprices-india.com)
