SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index remained stable this week and stands at $99/t FoB east coast India. Four confirmed deals were recorded by SteelMint during this publishing window. Chinese iron ore port-side inventories have increased this week and buyers seem to have booked quite amount of cargoes for restocking ahead of spring festival. Thus, after decline in the Chinese iron ore spot prices seen in the last two days, Indian iron ore export market turned bearish and witnessed decline in bids.
” As per the market participants though the market was at higher sider at the beginning of this week and also few deals were concluded, prices have softened by around $ 2-3/t. Indian miners and traders are little reluctant to take any position in the current market”, highlighted an Odisha based exporter.
Recent deals:
- A confirmed trade deal was concluded today for 55,000t Indian ow-grade fines (Fe 57%) cargo for Feb end laycan at $113/t CFR China.
- Another eastern India based trading company concluded two shipments for export of low-grade fines (Fe 57%) on 12 Jan’21 at $112/t CFR China for Feb laycan.
- An Odisha based miner was heard to have concluded one parcel of 55,000t fines at $2 premium over the prevailing offers.
Price indicators – Four confirmed trades have reported this week so far for mid and Feb’21 end laycan at $112-114.5/t CFR China and all the trades were considered for price calculation as T1 trade and given a weightage of 50%.
SteelMint has received twelve (12) indicative prices and offers during the publishing window, out of which only ten (10) were considered for price calculation as T2 inputs, with an average price of $99/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 decreased by $2/t – Chinese spot iron ore fines (Fe 62%) index decreased by around $2.35/t on a daily basis yesterday and stood at $169/t CFR China against $171.35/t a day before. Weakening steel margins following decline in construction activities weighed on the spot prices.
- Iron ore futures fall this week – Dalian iron ore futures’ contract of May’21 closed at RMB 1,055/t today against RMB 1062.5/t last week.
- Iron ore stocks at Chinese ports increased- Iron ore inventory at major Chinese ports has increased this week. Iron ore inventories hiked by 0.6 mn t to 124.8 mn t as per data maintained by SteelHome.
- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) this week stands stable at INR 3,500-3,800/t (ex-mines, incl. Royalty, DMF and NMET).
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