Indian low-grade fines export index remains largely stable, market silent

SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index remained largely stable this week and is currently assessed at $100/t FoB east coast India. The market remained silent with hardly one deal being heard so far this week. Chinese port-side inventories have further increased this week.

Few inquiries were heard from Chinese mills but the buyers seem to be interested to book cargoes for Feb-end and early March shipments, due to approaching local holidays, stated market participants.

“Chinese mills are more interested to take high grade iron ore fines and lumps rather low-grade ore presently owing to high coke prices prevailing”, shared a Chinese participant

Price indicators – No deal has been confirmed so far in this week. However there was an unconfirmed trade heard at around $114/t CFR China for Feb end and March shipment. Since, it was not confirmed at the time of publishing this article hence not considered for index price calculation under T1 deal and transferred the weightage of T1 to T2 category.

• Towards the end of last week, one deal was concluded by a Odisha based renowned trader for 55,000 t low-grade Fe 57% fines at around $112-114/t CFR China.
• SteelMint has received eleven (11) 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 $100/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 $3/t – Chinese spot iron ore fines (Fe 62%) index decreased by around $2.55/t on a weekly basis yesterday and stood at $168.9/t CFR China against $171.45/t a week before. On a daily basis prices were down at around 1.35/t against a day before.
• Iron ore futures increased – Dalian iron ore futures’ contract of May’21 closed at RMB 1,061/t today against RMB 1,055/t last week.
• Iron ore stocks at Chinese ports increase further- Iron ore inventory at major Chinese ports has increased by 0.7 mn t to 125.5 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).