India begin to resist the mine to decline the export quotation

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Mar 2009

India iron ore import price from China continued to decrease, and 63.5% powder ore export price slipped to $63.5-65per ton (CFR) from $64-68per ton (CFR) last week. At present, India's low-grade ore inquiry was more active and the demand was also better than the high-grade ore. The steel mills needed not only to maintain production, but also to reduce cost. It was said that the India mine resisted to reduce the price further and some mines had stopped to wait for the buyer giving acceptable counter-offer. India iron ore production cost was not high, but transport fees could not be ignored and the shipment cost was at least $10per ton to Indian port from the mines. In terms of the present price, the mines near to the port had a certain profit, while the mines far away from the port had hardly profit.
In the China market, India mines were facing Australia ore mining competition. The Australian mines were more attractive to the China steel mills due to the good quality and competitive price.  The quotation of 63% Australia mines was about $60-61 per ton (CFR).

Source: MetalBiz