SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index remained flat w-o-w due to ongoing week-long Chinese holidays. SteelMint’s index stands at $78/t FoB east coast India.
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) – No export deal has been concluded in this publication window. Therefore, weightage for trade kept nil in the final price calculation.
Price indicators (T2) – SteelMint has received four indicative prices and offers during the publishing window. All inputs were considered for price calculation as T2 inputs, with an average price of $78/t FoB India.
Market overview – Chinese spot iron ore fines (Fe 62%) prices closed last week before the national holiday at $123.15/t CFR as against $119/t CFR China a day before. As per the sources, the Chinese market is closed and Indian exporters are expecting buyers to be back in the market from tomorrow. No low-grade fines export trades have been observed from India.
Iron ore inventory at major Chinese ports increased in the last week by 2.35 mn t to 122.65 mn t against 120.3 mn t week ago.
According to the market sources, the market is optimistic about iron ore fines demand post-holidays. However, high-grade pellets are expected to be given more preference than fines considering the approaching winter season during which sintering cuts may be imposed more strictly.
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