MBIO Index 5 Mar 2010: Index holds at the end of the week

05 MARCH 2010

The MBIO Index today calculated to $130.31/tonne cfr Qingdao on a 62% Fe basis. This is a slight increase of $0.36/tonne from yesterday’s figure, and reflects the continuing uncertainty in the market. The majority of transactions for Indian material at 63.5% have tightened into the range of $137-138.50/tonne cfr China, although some deals are reported to have been done outside that range, as not all suppliers have been willing to drop their offer prices. However, the number of transactions taking place has dropped in the face of weaker demand, and some suppliers are struggling to transact deals at prices less than that quoted. One supplier reported that buyers are not interested in material of the same quality at $135-136/tonne cfr China. In addition, price weakness in the lower grade fines has impacted the market, giving buyers more opportunity to negotiate better prices for higher grades.