Indian Firms Want To Renegotiate Terms Of $10.8B Afghan Iron Ore Deal

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Various Indian companies led by Steel Authority of India are “seeking to renegotiate the terms of an iron ore deal in Afghanistan worth up to $10.8 billion, a senior official at the Ministry of Mines said on Tuesday,” reports Reuters.

“The situation arose after India’s finance ministry refused to help finance the consortium without a detailed study about the commercial viability of the project.”

“Investment in Afghanistan’s mining sector is considered one of the greatest hopes of the country attaining economic independence and the halt will add to concern that it will not be able to support itself economically as aid flows shrink.”

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On Monday, October 28, the day’s biggest mover was the price of Chinese HRC, which saw a 0.9 percent decline. Following a quiet couple of days, the price of Chinese slab fell 0.3 percent on Monday. The price of Chinese coking coal remained essentially flat. The price of iron ore 58% fines from India was range bound.

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Also on the LME, the cash price of steel billet held steady around $215.00 per metric ton. The steel billet 3-month price saw little price change yesterday on the LME at $230.00 per metric ton.

For the fifth day in a row, the US HRC futures contract 3-month price remained essentially flat at $650.00 per short ton. The US HRC futures contract spot price saw little movement on Monday, closing out around $651.00 per short ton.