Indian iron ore exports to China

July 3, 2008

July 3rd (Steel Guru) – Indian spot iron ore market is reported to be quiet due to huge stockpiles at Chinese ports and Chinese buyers have slowed down their buying from India especially for low grade ore.

As per market reports, Chinese buyers are willing to pay is about USD 175 per tonne to USD 185 per tonne on CFR basis. But as iron ore containing 63.5% Fe is attractive to Chinese importers, grades below 63% Fe content may face a drop in sales.

On the other hand, as INR to USD exchange rate has gone up for INR 39 to INR 43 and freight rates have fallen to about USD 35 per tone from USD 50 per tonne, exporters’ profit will lose too much despite 15% export tax.

Indian iron ore miners are now waiting for the National Mineral Development Corporation to fix the 2008-2009 ore prices. NMDC is expected to fix up very soon in line with international benchmark settlements.

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