International iron ore prices have rallied to a seven-year high, largely on account of a mine disaster in Brazil, which shuttered a significant chunk of output in Vale SA, the world’s second-largest ore producer. Yet, a disparity exists between international and domestic prices of iron ore. That comes even as domestic prices surged to a record in December, according to Bloomberg data and exchange filings by state-run miner NMDC Ltd. Apart from steel, integrated pellet makers like Godawari Power & Ispat Ltd. are expected to witness gains as their prices are also set to inch northwards. When economies are growing, the need for steel in construction increases which drives the price up. iron ore 62% fe, cfr china (tsi) - overview Discover a more efficient solution for hedging iron ore price exposure against marginal cost of production swings and supply-side price squeezes. “Bulk of sales for domestic steel players continues to be in the export market (65-70% versus normal levels of 15-20%),” according to Edelweiss Securities. But higher iron ore prices will increase cost of production for steelmakers. This should benefit producers like NMDC, he said. Updated: 07 Jan 2021, ... however, rising iron ore prices will take away some of the benefits. As a result of steel margin continues to remain under pressure.”. Iron ore prices surged 6% to $103.35 a tonne in Singapore on Monday, the highest since August 2019, on supply woes and concerns that surging Covid-19 cases in Brazil will disrupt … That deepened the slump in output of the alloy as new construction and purchases of cars and houses were delayed, hurting demand for iron ore. Demand picked up in the second half of this year, according to Bloomberg data, with China, the largest consumer, spending heavily on construction to rescue an economy that cratered in the wake of the pandemic. Platts Iron Ore Index assessments reflect the tradeable price of iron ore at 5.30pm Singapore/Beijing time (9.30 am GMT). Production disruption in Odisha has resulted in domestic iron ore prices scaling record highs as mines with aggregate capacity of 85 million tonnes per annum that underwent bidding haven’t resumed production at rated capacity. Commodities Realtime Quotes. This gap is expected to increase as a Brazilian labour court ordered Vale SA shut operations at its Itabira complex, accounting for about a 10th of its output, after 188 workers tested positive for coronavirus, Bloomberg reported. India’s steel output for May jumped more than threefold over the previous month, Morgan Stanley said in a report citing Joint Plant Committee’s data. Join our. Flats and long products witnessed a growth of 163% and 124% at 9.05 lakh tonnes and 2 lakh tonnes, respectively. Yet, NMDC’s fine prices at discount to international and Odisha iron ore prices. The surge in domestic iron ore prices is due to: While high international prices provide room for domestic iron ore exporters to expand, disruption in Odisha has provided a leg up to Indian iron ore industry—at least for the near term. “We’re getting US$166 to US$167 per tonne,” said O’Keeffe. Prices have also increased in December. Its high-grade output fetches a premium over the benchmark iron ore price. Rakesh Arora, managing partner at Go India Advisors, said steel output is recovering in India, and mills had stocked up raw material till March in view of a disruption to 30% of iron ore production. Mining activities being disrupted in Odisha—a key ore producing state. Iron Ore (Fe) is mined in around 50 countries worldwide and used to make steel (buildings, cars, white goods etc.). Rakesh Arora, market expert, said it’s the sellers’ market with supply normalcy some time away and the sharp shortages in India and abroad aiding the iron ore rally. China, 62% Fe beginning December 2008; previously 63.5%. Missing BloombergQuint's WhatsApp service? Prices have also increased in December. Australia stuck with a conservative iron ore price forecast in its latest budget update, even as prices surge, setting the country up for a windfall … View on bloomberg.com Dec 16, 2020 Sunlight catches a freight train carrying iron ore from mine to port as it travels along a rail track. Champion forecast long-term sustainable iron ore prices at about US$85 per tonne in its expansion project feasibility study. That’s in contrast to the situation during December-March when production rose after merchants ramped up capacities ahead of mining leases’ expiry in March 2020. Description: Iron ore (any origin) fines, spot price, c.f.r. Jun 2020 - Nov 2020: 21.060 (20.39 %) Chart. Global economic growth is the primary factor that drives its supply and demand. That apart, Union Minister for Road Transport and Highways Nitin Gadkari recently sought the Prime Minister Narendra Modi’s intervention in the near-55% hike in steel prices by companies over the last six months, making projects unviable. Bloomberg are out today with a piece about how the short term risk of iron ore topping out and the ongoing trade squabble with China may upset the plans of … The cyclically-sensitive Australian dollar seems poised to outperform its major counterparts in 2021, ... Data Source – Bloomberg. Historically, Iron Ore 62% FE reached an all time high of 188.90 in February of 2011. Domestic iron ore prices are likely to rebound as steel mills ramp up production after the lockdown curbs were eased and the world’s biggest producer of the steel-making ingredient shut operations at a mine. That compares with a flat Nifty 50 Index. The S&P/ASX 200 gained 44 … SteelOrbis is the primary information source preferred by leading iron ore producers for its up-to-date iron ore prices, iron ore market analyses and news, as it closely follows the main iron ore markets such as Australia, India and China. Iron Ore Prices, News and Analysis. The IODEX assessment is not origin specific, and takes into account ores with iron content between 60-63.5% Prior to 2012, the spot market saw Indian material traded most actively; this shifted, with Australia being the main source of spot medium grade fines material. Source: Bloomberg … The company has raised its notified price again in December by 12% for fines and 15% for lumps. SINGAPORE — The Australian dollar has leaped to its highest in more than two years, helped by surging iron ore prices… “I mean, that allows us to just print money. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. Iron ore prices have risen the most among ferrous commodities so far this year globally as demand for the key raw material used in steelmaking rose once economies around the world restarted following the Covid-19 pandemic.Prices of Dalian Commodity Exchange iron ore have risen more than 50% so far this year compared with hot-rolled coil steel’s 20% gain and steel rebar’s 12% increase, according to Bloomberg data. News. Analysts expect international prices to remain high, given the supply side issues and growing demand. MMi Daily Iron Ore Report (January 8) As of January 8, iron ore inventories across 35 ports tracked by SMM totalled 116.89 million mt, a decrease of 2.16 million mt from the previous week and up 3.15 million mt year-on-year. This gap is expected to increase as a Brazilian labour court ordered Vale SA shut operations at its Itabira complex, accounting for about a 10th of its output, after 188 workers tested positive for coronavirus, Bloomberg reported. Get updated commodity futures prices. Prices of Dalian Commodity Exchange iron ore have risen more than 50% so far this year compared with hot-rolled coil steel’s 20% gain and steel rebar’s 12% increase, according to Bloomberg data. This statistic shows the average commodity price for iron ore from 2003 to 2019. That, along with higher domestic iron ore production, may keep the prices of the raw material stable, according to Amit Dixit, assistant vice president-research at Edelweiss Securities. Also, domestic iron ore prices are trading at a discount to international prices, which rallied more than 20% in last two months. 6m 1y 5y 10y 15y 20y 25y 30y. Range. Iron ore prices surged 6% to $103.35 a tonne in Singapore on Monday, the highest since August 2019, on supply woes and concerns that surging Covid-19 cases in Brazil will disrupt other mines. According to JP Morgan, increase in output by steelmakers, iron ore exports from Odisha becoming profitable at current spot prices and higher sales by NMDC are expected to lift prices of the key raw material. Prices of Dalian Commodity Exchange iron ore have risen more than 50% so far this year compared with hot-rolled coil steel’s 20% gain and steel rebar’s 12% increase, according to Bloomberg data. 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