India Steel Market Watch
October 15: Spot iron ore offers struggled to edge higher pressured by weak steel prices in
China and limited appetite among producers for immediate cargoes of the raw material, industry sources said.
Shanghai steel futures have lost more than 60% from early 2013 amid a slowing Chinese economy that has shrunk domestic steel demand.
An approaching winter in China which slows construction activity could further darken the outlook for domestic steel demand. And analysts say the upside potential for steel exports may be capped by rising trade friction with producers elsewhere in the world.
China's steel exports hit a record high of 11.25 million tons in September, data showed.
"If China's steel product export growth slows due to trade barriers, we could see a glut of steel in China push down domestic steel prices, likely translating through to weaker iron ore prices due to margin pressure," Commonwealth Bank of Australia said in a note.
Iron ore for immediate delivery to China's Tianjin Port stood at $55 per ton.
Following are prevailing iron ore prices in international markets:
Grade % Fe |
Origin |
Product |
load port |
destination |
Oct 15, 2015: cfr ($/ton) |
Oct 14, 2015: cfr ($/ton) |
Oct 13, 2015: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
56 |
56 |
55 |
62 |
India |
Fines |
FOB Vizag |
24 |
24 |
23 |
|
62 |
Australia |
PB |
Dampier |
Tianjin |
56 |
56 |
55 |
63.5 |
Brazil |
Fines |
Brazil |
China |
58 |
58 |
57 |
Source: Traders