Spot prices of iron ore for export from Iran continued to fall because of low demand from China, industry sources said Sunday.
Prices for 61-62% Fe magnetite fines slipped by $2/dry mt in the last week to $57/dmt FOB Bandar Abbas, south Iran, on Sunday, buyers and sellers said. The price of 61-62% Fe magnetite lump ore also dropped $2/dmt to $59/dmt FOB Bandar Abbas over the same period, they added.
Demand remains low in spite of the price decline, a trader said. The cost of exploitation and transport vary depending on mine size and location. Larger mines near the port could continue export operations even at prices as low as $26-30/dmt FOB, but small miners are struggling to stay afloat at current price levels, one of the sources said.
Costs for smaller miners in north Iran are higher.
Exploitation of low grade iron ore is currently not commercially viable, so some miners are waiting for higher prices, sources said. Production of ore in two northwestern provinces has halted completely, a trader noted.
Transport distance and quality are the most important factors at current price levels, sources said.
