With this preamble I am posting this news on iron ore situation in India and relationship with Chinese Ore market. This definitely leads to some direction to Australian ore
Note is derived from yahoo site which is meant for all and no copy right issue
UPDATE 1-Indian iron ore prices drop on lower China shipments
(Adds details, analyst comment and byline)
By Arpan Mukherjee
MUMBAI, June 12 (Reuters) – India’s prices of iron ore for export have dropped 8-11 percent as stockpiles build up at Chinese ports, trimming demand from its leading customer, the head of a trade body said on Thursday.
“There is a demand, but the interest for Indian cargo has been weak,” Rahul Baldota, president of the Federation of Indian Mineral Industries told Reuters.
China is the main market for India’s iron ore exporters such as Sesa Goa Ltd . India exports about 90 million tonnes of iron ore, and most of the sales are done on a spot basis.
The export price of ore has dropped by $10-$15 a tonne to $115-120 in the past six weeks, Baldota said, adding a combination of factors had led to the fall.
“Australian cargo is available in the spot market. Secondly, stocks are lying at various ports in China and prices were also very high, which cumulatively led to this,” he said.
Stockpiles of imported ore at Chinese ports hit an all-time high of nearly 80 million tonnes last month, and severe congestion there is contributing to a rise in freight rates.
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