SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index inched up today by $2/t on weekly basis to $78/t FoB India. SteelMint’s last week index stood at $76/t FoB India. However, the rally in price hike has slowed down this week following a correction in global iron ore prices.
Rationale: The index has been calculated using an average of T1 and T2 price inputs. Transactions confirmed by either a buyer/seller are designated as T1 input while bids, offers, and indicative prices are designated as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.
Transactions (T1) – One deal was concluded for Fe 57% grade fines from Odisha based trader on 8th Sept’20 at around $82/t FoB India. The deal has been given a 50% weightage in the final price calculation.
Price indicators (T2) – SteelMint has received five indicative prices and offers during the publishing window. All the inputs were considered for price calculation as T2 inputs, with an average price of $77/t FoB India.
Market overview – The market has been speculative about steel outlook in China as the inventory is started piling up at the Chinese steel mills.
Spot iron ore fines (Fe 62%) prices in China decreased around $5/t w-o-w to $126.3/t CFR China today against $130.8/t CFR China a week ago. On a daily basis, it has come down by around $1/t.
Considering the decline in iron ore futures followed by spot price corrections, Indian iron ore exporters are less active at the moment.
Iron ore inventory at major Chinese ports increased w-o-w at 118.95 mn t against 117.65 mn t a week ago as per Steelhome data.
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