indian ore prices set to rise

FYI

spot prices of Indian iron ore fines, after crashing by 25 to 30% depending on different grades during August 14th to September 11th and remaining stagnant last week, have finally come out of the slump on September 15th 2009.

Iron ore spot prices in China rose slightly on September 15th 2009 backed by increased demand from steel mills as they are starting to run short of iron ore stock.

Yesterday, a 63.5% Fe CFR China cargo was sold at USD 82 per tonne CFR China and more offers have been placed in the market at the same level.


Iron ore fines
FOB East Coast of India
Grade Change

Fe 63.5/63% 2%

Fe 63.5/62.5% 2%

Fe 63/62% 2%

Fe 62/61% 2%

Fe 61/60% 2%

Fe 60/59% 2%

Fe 59/58% 2%

Fe 58/57% 2%


Change is on September 15th as compared to September 11th 2009

Freight also softened for East Coast of India to Qingdao route to below USD 15 per tonne, giving hope to Indian miners and sellers of a rebound.

This is in line with our forecast for this week published on Monday “Monday Market Monitor - Iron Ore (WEEK 37) - Ray of hope”, which is reproduce below.

The spot prices of Indian iron ore fines, after crashing by 25 to 30% depending on different grades, remained stagnant last week amid low or negligible level of transactions giving hope to Indian miners and sellers of a rebound.

This is clearly a result of positive sentiments among Chinese players as the rate of Chinese domestic steel prices reduced further last week and rebar market rebounded.

But it is reported that Chinese iron ore spot buyers are likely to come back to purchase their replenishing stocks. Thus Indian iron ore market is likely to see some positives now

This is clearly a result of positive sentiments among Chinese players as the rate of Chinese domestic steel prices reduced further last week and rebar market rebounded.

This rebound is taking place after 25% to30% reduction in spot prices of Indian iron ore fines during August 14th and September 4th

from the SteelGuru

things are falling into place nicely.