SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index remained stable this week. Index stands at $76/t FoB east coast India. Amid decline in spot iron ore fines price, fall in futures and increasing Chinese port stocks, new export bookings have slowed down, traders have reported SteelMint.
Price indicators – No low-grade export deal (T1) heard so far this week and therefore not considered for calculation of index. However, weightage of T1 transferred to calculation of T2 inputs.
SteelMint has received five indicative prices and offers during the publishing window. All inputs were considered for price calculation as T2 inputs, with an average price of $76/t FoB 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.
Market highlights –
- Chinese spot iron ore fines (Fe 62%) fell marginally by around $1.6/t on weekly basis and stood at $ 117.45/t CFR China today against $116.25/ a week before.
- Iron ore inventory at major Chinese ports increased in this week further by 1.85 mn t to 130.8 mn t against 128.95 mn t a week ago.
- According to the sources, demand for low-grade ore is dull at current scenario and buyers are reluctant to buy amid the winter season. Steel mills are expected to turn active for pellet bookings amid sintering and production cut.
- Dalian iron ore futures today fell on pressure as exports of the raw material by top producer Australia likely picked up last month that may push China’s portside inventories higher. Most traded Jan’21 contract closed at RMB 783/t. Iron ore futures in Singapore Exchange remained range-bound at $113.12/t.
- India’s domestic iron ore fines (Fe 57%) price in Odisha is heard to be around INR 1,800-2,000/t ex-mines (incld. Royalty).
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