India's benchmark iron ore prices were quoted steady from last week, but exporters said the pressure was on as enquiries from China remained low.
An official at the Federation of Indian Mineral Industries (FIMI) quoted the benchmark rate for ores with 63.5 percent iron at $48-$50 per tonne, FOB, same as last week, but two other exporters said prices had fallen $2-$3 over the past week.
One large east India-based exporter said he sold 63.5 percent iron ore for $67 including freight and another consignment of 64.5 percent iron ore for $70.
India's iron ore exports have slumped since the end of February, after a brief pick-up towards the end of last year when Chinese purchases briefly surged. The diminishing interest from China, India's biggest iron ore client, is rooted in the Asian giant's steel industry that has slowed down since the economic crisis hit the world last year.
China consumes most of India's 100 million tonnes of annual exports from total production of about 200 million tonnes. Exporters were not hopeful of any major recovery in prices in the near future with annual contract negotiations coming up, when large players fix deals for the full year at prices that are taken by the industry as a benchmark.
With Chinese importers in wait-and-see mode as they hope to push annual prices as much as 40 percent lower, gains appeared unlikely. "We are seeing volumes are low. They have been coming down," said Glen Kalvampara, secretary of Goa Mineral Ore Exporters' Association based in the western Indian town of Goa.
Exports from India in April-January fell to 78.46 million tonnes against 79.67 million tonnes a year ago and exporters expect the fical year ending next Tuesady to show a decline in shipments. Last year India exported 104 million tonnes of ore.
Source: Reuters
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