Spot iron ore falls as China stays away

The spot export prices of Indian iron ore have slumped by nearly $10 as Chinese buyers are reluctant to pay a higher price for the mineral, which could deplete the bottomline of the cash-rich ore exporters.

"Indian iron ore spot export prices for 63.5 Fe fines, which early this month touched $200 a tonne CFR (cost and freight) in main China port have fallen back to $185-190 a tonne CFR levels after meeting resistance from buyers," the Metal Bulletin reported.

It said some Indian exporters were concerned that global spot prices may dip further. They cited Rio Tinto's announcement offering 15 million tonne of ore in the spot market this year.

"But restrictions on ore exports may help sustain current price levels. Goan exporters are likely to lose 8 million tonne of production if the Supreme Court refuses to allow 24 mines, which have been closed on various environmental grounds, to reopen," the report said.

Moreover, exports of Indian ore could be restricted further by a probe into the granting of mining leases by the Karnataka government's anti-corruption ombudsman, the Bulletin said.