SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index remained largely stable this week. SteelMint’s index stands at $88/t FoB east coast India. Market participants cited limited buying inquiries for low-grade ore from Chinese traders amid amid festive mood of Christmas.
Indian traders have adopted the ‘wait & watch’ approach as sharp volatility in iron ore and steel futures was seen this week.
Price indicators – No deal was concluded this week so far. Therefore, it was not considered for calculation of index and weightage given 0%.
SteelMint has received eight indicative prices, offers and bids during the publishing window and only six were considered for price calculation as T2 inputs, with an average price of $88/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 increased by $3/t d-o-d – Chinese spot iron ore fines (Fe 62%) index increased by around $3.45/t on a daily basis and stood at $ 166.5/t CFR China today against $163.05/t a week before. However, on a weekly basis spot prices increased by around $8/t against $158.7/t CFR, China a week before.
- Futures rebound after declining early this week – Dalian iron ore futures’ contract of May’21 closed at RMB 1,036/t today. Futures had fallen to RMB 1,026.5 on 23 Dec’20.
- Iron ore stocks at Chinese ports increase- Iron ore inventory at major Chinese ports has been increasing in the last two weeks. Iron ore inventories this week increased further by 0.6 mn t to 126.95 mn t as per data maintained by SteelHome.
- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) remains stable this week at INR 3,000-3,200/t (ex-mines, incl. Royalty, DMF and NMET).
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