Chinese steel mills & traders are reported to looking at importing cheaper lower grade iron ore & pellets from India after Indian government removed 50% export tax on 19 November to lower costs in prevailing negative margin situation after six months of suspension. Reports suggest of few such transactions for low grade iron ore fines & pellets after removal of export taxCurrent offers for 57% iron ore fines are reported at USD 69-71 per tonne CFR, while bids are being heard at USD 63-65 and market reports suggest that 63% iron ore pellets are traded at USD 111-112 CFR ChinaLow-grade Indian fines had largely fallen out of favor with Chinese steel mills as high impurity content makes it emissions unfriendly. As such, Demand is expected to remain subdued in the near-term as local governments in China often issue directions to steel mills to control emissions in winter when coal burn for heating leads to haze in several cities. However, Indian low-grade fines producers may keep selling ores in China, even if prices fall further, as such ores have very little domestic demand.FACT BOXIndia’s exports of fines, lumps and concentrate of all grades fell by 66% to 4.08 million tonnes in April-September 2022 as compared with 11.85 million tonnes a year earlier.India’s iron ore pellet exports fell by 60% in April-September to 2.62 million tonnes as compared with 6.44 million tonnes in the same months of 2021.
Chinese steel mills & traders are reported to looking at importing cheaper lower grade iron ore & pellets from India after Indian government removed 50% export tax on 19 November to lower costs in prevailing negative margin situation after six months of suspension. Reports suggest of few such transactions for low grade iron ore fines & pellets after removal of export taxCurrent offers for 57% iron ore fines are reported at USD 69-71 per tonne CFR, while bids are being heard at USD 63-65 and market reports suggest that 63% iron ore pellets are traded at USD 111-112 CFR ChinaLow-grade Indian fines had largely fallen out of favor with Chinese steel mills as high impurity content makes it emissions unfriendly. As such, Demand is expected to remain subdued in the near-term as local governments in China often issue directions to steel mills to control emissions in winter when coal burn for heating leads to haze in several cities. However, Indian low-grade fines producers may keep selling ores in China, even if prices fall further, as such ores have very little domestic demand.FACT BOXIndia’s exports of fines, lumps and concentrate of all grades fell by 66% to 4.08 million tonnes in April-September 2022 as compared with 11.85 million tonnes a year earlier.India’s iron ore pellet exports fell by 60% in April-September to 2.62 million tonnes as compared with 6.44 million tonnes in the same months of 2021.
