Indian iron ore producers are looking at spot prices for their product starting to rise in March and continuing an upward trend until the end of May
Mr Atul Kaamath CEO of Raiseore said that the past five years' data has showed that the iron ore market typically experiences a mild post-Chinese new year rally, followed by a short calm period until March.
He said that "However, the iron ore market will enter peak season from March to June."
Mr Kaamath said that the South Asia monsoon season, which starts from June and will last for 3 to 4 months, will force most of the ports on the west coast of India to close. Iron ore mined at that time will suffer from a high moisture level of up to 10 or 12%, against a normal moisture content 8 to 9%, therefore buyers tend to order and arrange deliveries in the first half of each year to avoid the inconvenience and high moisture.
He said that "The west coast of India is shut for 4 months, so traders pick up large quantities before the monsoon." Although lump material continues to be exported during the monsoon, there is no iron ore fines exported.
Source: Steel Guru
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