Fortescue keeps November discounts unchanged
Singapore, 19 October (Argus) — Australian iron ore producer Fortescue has kept its discounts for its 56-58pc Fe iron ore fines unchanged for November cargoes.
The discount for 56.7pc superspecial fines fines is unchanged at 40pc for November index-linked cargoes from October, market participants said. The discount for 58.3pc blended fines is unchanged at 23pc and for 57.5pc Western fines unchanged at 41pc.
Fortescue sells its fines at a discount to the 62pc reference fines index.
Lower grade fines have fallen in value relative to mainstream 62pc fines as 65pc IOCJ fines have widened the spread to 62pc fines. The 65pc index has risen to as much as a 40pc premium to the 62pc index in late September and early October. Steel mills' buying attention has focused mostly on high-grade fines in less supply, as well as direct-charge products, to keep output rates higher during operational restrictions.
The return of India's Goa iron ore fines will increase pressure further on medium and low-grade fines. Goa, the country's largest iron ore exporter, had been on its annual monsoon season break since June and will possibly only resume normal sales this month.