Is this TTY? Higher grades are still getting sales.Update on...

Is this TTY? Higher grades are still getting sales.


Update on Chinese iron ore import market scenario
Platts reported that iron ore demand is decreasing but some traders indicated they were still able to achieve reasonable sale prices.

An Australian supplier traded a 61.5% Fe at USD 72 per DMT CFR North China, loading mid January in Australia. Iron ore fines 62.8% traded at USD 75 per DMT CFR North China, loading mid January in Australia. This is 50 cents higher than a trade earlier in the week.

Meanwhile offers for 58% were decreasing. Buyers were not interested in USD 56 per DMT CFR North China for 58% Fe and offers were now down to USD 50 per DMT CFR North China. Buyers were holding back from purchasing the lower grade for blending, as they are unsure what will happen to steel prices in the New Year.

Trader said that "Right now the price of USD 56 per DMT CFR North China leaves a profit margin for steel manufacturers. However, they are hesitating and wondering what will happen to steel prices."

Platts assessment for 62/62 Fe remained steady last Wednesday at USD 73 per dead million tonnes CFR North China. On the lump market a deal for 63% Fe was reported concluded at USD 75 per dead million tonnes CFR North China, loading mid January Australia.

An iron ore trading source reported congestion at Haldia and Paradip, two east coast ports in India that "There is heavy congestion at Haldia and Paradip and buyers are hesitating to purchase or place orders."

Congestion of up to fifteen days for Haldia and Paradip combined have been reported by trading sources. Typically there can be several days delay at these ports but not up to fifteen days. There appears to have also been an impact on freight rates. Although handy vessels were trading at USD 11 per weight million tonnes to USD 12 per weight million tonnes, several iron ore traders were reporting pressure on rates.