Reports of Chinese steel mills commencing
iron ore restocking have failed to provide support for the Indian
iron ore fines spot export price, which has slipped $10/mt since Friday, August 31 to $97/mt CFR for 63.5 percent Fe grade, traders based in the eastern Indian ore mining province of Orissa said on Wednesday, September 5.
"Chinese mills may be restocking but import interest from
India is still weak. Importers are not sure of getting their volumes from the Indian market, since mining activities have not revived yet," a trader based in Orissa's mining town of Barbil said.
"Since early August,
China's import price from
India has fallen 24 percent as large buyers have been staying outside the market due to their uncertainty about availability of ore for exports," the trader said.
Last week, the Indian ministry of mines proposed a lowering of the 30 percent export duty on fines but this is unlikely to be pass government muster, since the steel ministry is opposing it and the focus is on greater investments in pelletization and hence the lack of buoyancy in export prices, a Kolkata trader said.
India's Supreme Court lifted the ban on 21 mines in southern Indian province of Karnataka last week, but this is not expected to increase supplies immediately since obtaining statutory approvals would take months and a 32.5 million mt per year cap has been imposed on these mines, the trader said.
"Unless Chinese buyers are assured of supplies in terms of volumes, import offer price from these buyers are unlikely to rise," he added.
According to the Federation of Indian Mineral Industries (FIMI), Indian
iron ore exports during the fiscal year 2012-13 are expected to reach 45 million mt, down 37 percent from the previous fiscal year.
"Chinese import demand is only for 63.5 percent Fe grade for which very few Indian mines are operational and unless large importers are able to get their volumes offers will remain at low levels," a trader in Orissa said.