SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index increased by $3/t this week. Index stands at $79/t FoB east coast India. Amid increased spot iron ore fines price in China and supply tightness in Odisha, export prices have moved up.
Price indicators – No low-grade export deal (T1) heard so far this week and therefore not considered for calculation of index. However, the weightage of T1 transferred to calculation of T2 inputs.
SteelMint has received four indicative prices and offers during the publishing window and only three inputs were considered for price calculation as T2 inputs, with an average price of $79/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%) increased by around $7/t on a weekly basis and stood at $ 124.9/t CFR China yesterday against $117.65/t a week before. However, on a daily basis also, the price has increased up by $1.6/t yesterday against $123.3/t CFR a day before.
- Dalian iron ore futures’ have increased with most traded contract of Jan’21 today closing at RMB 835.5/t against RMB 783 a week back.
- According to the sources, demand for low-grade ore is not too strong currently and buyers are less active to buy amid the winter season. However, mills are expected to turn active for pellet bookings amid sintering cuts and falling pellet port stocks
Chinese market participants highlighted slight disparity in bids and offers for Indian low grade fines, hence no firm trades were reported. - Chinese market participants highlighted slight disparity in bids and offers for Indian low grade fines, hence no firm trades were reported.
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