SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index fell by around $6/t amid sharp fall in global iron ore fines index. SteelMint’s current assessment stands at $72/t FoB east coast India. Three deals have been reported earlier this week, however, later fines export market turned silent.
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) – Three export deals have been concluded for Fe 57% grade fines from the traders and miners at the beginning of this week with an average price of $73/t FoB India. The deals concluded are for mid-Oct shipment for a quantity of around 55,000 t each. The deals have been given a 50% weightage in the final price calculation.
Details of the transactions held:
Source: SteelMint Research
Price indicators (T2) – SteelMint has received five indicative prices and offers during the publishing window. Only three inputs were considered for price calculation as T2 inputs, with an average price of $71/t FoB India.
Market overview – Spot iron ore fines (Fe 62%) prices in China decreased further yesterday to $114/t CFR China, down by $8 w-o-w. Prices have softened by around $17/t since the beginning of last week.
- DCE iron ore futures contract for Jan’21 closed at RMB 766.5/t yesterday, lower by RMB 24 w-o-w.
- Iron ore inventory at major Chinese ports increased w-o-w to 120.3 mn t against 118.3 mn t a week ago as per Steelhome data.
- According to the market sources report to SteelMint, approaching one week of national holidays in China (1st to 8th Oct) is likely to keep the market less active next week.
- Imposed sintering cuts are still effective in Tangshan and more stringent controls may come in place once the winter heating season starts.
Leave a Reply