SteelMint’s weekly low-grade iron ore fines (Fe 57%) FoB India index remains range-bound this week. Index stands at $80/t FoB east coast India. One export deal from an Odisha based miner was reported this week. However other Odisha based iron ore miners/exporters remained less active in export market.
Price indicators – One export deal was heard to be concluded and Odisha miner for 55,000 t fines (Fe 57%) at $91-92/t CFR China early this week. It has been considered for calculation of index and weightage given 50%.
SteelMint has received five indicative prices and offers during the publishing window out of which four 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 –
- Spot iron ore fines price in China inch up – Chinese spot iron ore fines (Fe 62%) increased by around $2/t on a weekly basis and stood at $ 128.15/t CFR China yesterday against $127/t a week before.
- Futures closed higher against last week – Dalian iron ore futures’ contract of Jan’21 closed at RMB 897 today against RMB 876.5 a week back.
- Decline in iron ore inventories at Chinese ports – Iron ore inventory at major Chinese ports have been decreasing from the last couple of weeks. It has come down to 130.3 mn t this week against 131.6 mn t last week as per data maintained by Steelhome.
- According to the sources, demand for low-grade ore is still moderate and buyers are restocking iron ore before the new Chinese year holidays.
- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) stands at INR 2,800-3,000/t (ex-mines, incld. Royalty, DMF and NMET).
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