July 31st (Steel Guru) – China Chamber of Commerce of Metals, Minerals and Chemicals Importers & Exporters has released the average reference prices for import transactions of ferrous 63.5% Indian iron ore concluded last week on July 28th 2008 as under

Delivery This week Last week
FOB Indian port 136 to 140 135 to 143
CIF Chinese port 180 to 188 182 to 199
     

Price in USD per tonne
The change is with reference to that posted on July 21st 2008

The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China’s booming steel industry. The China Chamber of Commerce of Metals, Minerals and Chemicals Importers & Exporters are the largest trading association in China.

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July 25th (Steel Guru) – China Chamber of Commerce of Metals, Minerals and Chemicals Importers & Exporters has released the average reference prices for import transactions of ferrous 63.5% Indian iron ore concluded last week on July 21st 2008 as under

Delivery This week Last week
FOB Indian port 135 to 143 135 to 155
CIF Chinese port 182 to 199 185 to 190
     

Price in USD per tonne
The change is with reference to that posted on July 14th 2008

The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China’s booming steel industry. The China Chamber of Commerce of Metals, Minerals and Chemicals Importers & Exporters are the largest trading association in China.

July 16th (Steel Guru) – It is reported that, amid strong demand, due to supply side constraints, domestic spot prices for iron ore would go up from today by 6% to 7%.

Product Grade Size 14-Jul 15-Jul Change %
Iron ore – BF Fe 65% 10-40 5500 5900 400 7.3%
Iron ore – Sponge Fe 63% 5-18 6600 7000 400 6.1%
             

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63% and INR 27 per tonne for Fe content of 65%

The price trend for last one month has been as under

Product Grade Size 23-Jun 1-Jul 15-Jul
Iron ore – BF Fe 65% 10-40 5000 5500 5900
Iron ore – Sponge Fe 63% 5-18 6100 6600 7000
           

Change over last 1 month has been 15% to 20%

Product Grade Size Change %
Iron ore – BF Fe 65% 10-40 900 18.0%
Iron ore – Sponge Fe 63% 5-18 900 14.8%

July 15th (Steel Guru) – The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on July 14th 2008

Delivery Price Change
FOB Indian port USD 135-USD 155 Up by USD 10
CIF Chinese port USD 185-USD 190 None
     

The change is with respect to prices posted on July 7th 2008

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China’s booming steel industry.

July 15th (Steel Guru) – According to Customs of Guangzhou, in H1 2008 the imported volume of iron ore in China’s Guangdong province gained by 17.5% YoY to 5.24 million tonnes which is valued at USD 870 million and the price surged by 88.8% to USD 167 per tonne on average.

According to the Customs, it is the international iron ore talk and rocketing freight rate that combine to cause the increases in import volume and prices of iron ore in Guangdong province in the first half of 2008.

Baosteel’s first acceptance of 65% iron ore price rise earlier this year with Vale and then the settlement with Australian miners of 96.5 hike on lump lead to worldwide upsurge of this resource. Meanwhile, freight rate from Brazil to Tianjin port surges to current USD 80 per tonne from USD 20 per tonne in 2006, and the case is true with ports in Guangdong province. The rise in freight rate directly triggers cost increase of imported resource.

July 6th (Steel Guru) – According to report released by Market Operation Department of Chinese Ministry of Commerce, domestic spot ore price has down by 1.96% from May to CNY 1560 per tonne in June.

The report also notes that iron ore supply has increased notably in the month but ore consumption weakened.

The Customs data shows that China’s imported iron ore up by 19.6% YoY to 192 million tonnes in the first five months. However, the ore price rally has run out of steam due to softening market demand. Domestic crude steel output advances 9.4% to 260 million tonnes through May, while the growth rate dips 10.6 percentage points from same time of last year. Moreover, some mills in North China are to halt production in near future due to Olympic Games. Therefore, China’s steel capacity utilization would be restrained in the coming months.

The Department also pointed out that domestic iron ore price might go up further in the short term. However, the price run up would be short lived given current sufficient supply. And the spot ore price is expected to hold steady in days to come.

July 2nd (Steel Guru) – We had reported on June 29th 2008, that after Orissa Mining Corporation’s latest quarterly tender on for sale of iron ore during July to September 2008, the market prices of iron ore in Orissa are expected to surge by INR 500 per tonne

As per reports received this morning, the prices of iron ore in Burwil area of Orissa have gone up by INR 500 per tonne.

Product Grade Size 30-Jun 1-Jul Change %
Iron ore – BF Fe 65% 10-40 5000 5500 500 10.0%
Iron ore – Sponge Fe 63% 5-18 6100 6600 500 8.2%
             

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63 and INR 27 per tonne for Fe content of 65%