The Prices of Indian Iron Ore has dropped by 12% to 14% in the international market. The high grade iron ore of Fe 63.5% are not at the level of USD 168 per metric ton and the low grade iron ore of Fe 54% is around USD 98 per metric ton.
It is expected the high grade iron ore will further fall to the price level of USD 150-160 per metric ton with the coming month. This down fall in the prices is due to the global financial turmoil.
If the global financial crisis stabilizes, then there is chance of the price to go up for the Indian origin iron ore. Now most of the mills in China are attracted to the iron ore of South Africa and Chile origins. They have entered into long term ventures with the miners in these countries.
Today, Indian Iron Ore has 27% of market share in ChineseMarket. On the other side, the exports from India are also down due to shortage of supplies from the State of Goa, Karnataka, Jharkhand and Orissa. The exports may fall to 70 million metric tons from the average exports of 98.5 million metric tons this year.