SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index up by $1/t w-o-w to $99/t FoB east coast India. Spot iron ore price reached a nine-year high level as buying interest for medium-grade iron ore fines remained strong amid supply tightness. Confirmed export trades of around 125,000 t Indian low-grade fines (Fe 57%) were recorded by SteelMint in last one week.
According to the market sources, the recent stringent steel production cut announcement in Tangshan may change the steel making raw material feed process in the upcoming days. Pellet and other high-grade raw material may be more preferable than the low-grade ore and sinter, if the quality of air doesn’t improve. These intensified production & transportation restrictions came into effect from 2nd March evening and will last until 5th Mar morning, sources mentioned.
India low-grade iron ore fines export deals-:
Rationale:
Price indicators- Three confirmed trades were reported and only two were of them considered for price calculations and given a weightage of 50%.
SteelMint has received thirteen (13) indicative prices and offers during the publishing window, and all were considered for price calculation as T2 inputs, with an average price of $98/t FoB India.
Market highlights –
- Spot iron ore fines price increase w-o-w- Spot iron ore fines Fe 62% price increased by $3/t w-o-w. The prices witnessed at $177.45/t yesterday as against $ 174.3/t a week before. However, the prices up around 175. 5/t, cfr china assessed the day before yesterday.
- Iron ore futures up marginally- Dalian iron ore futures contract of May’21 closed yesterday at RMB 1,153.5/t against RMB 1,131/t a week before. On a weekly basis, futures have increased by RMB 22/t .
- Iron ore stocks at Chinese ports increase marginally- Iron ore inventory at major Chinese ports has increased to 129.5 mn t this week as compared with 129 mn t, last week as per data maintained by SteelHome.
- Australian miner cuts discount on low grade ore- A leading Australian miner has cut low-grade iron ore fines (SSF) discount from 11% to 10.5% for Mar’21 deliveries.
- Domestic offers of low-grade iron ore stable- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) remained stable in this week from Odisha after a bulk deals done last week. Prices stood at INR 3,700-3,800/t ($ 50-52/t, ex-mines, incl. Royalty, DMF and NMET) this week.
- JSW to re-auction 300,000 t iron ore fines from Odisha mines- LowJSW Steel is going to re-auction 300,000 t low grade (Fe 55-58%) iron ore fines from its Jajang mines, Odisha. The auction is scheduled on 10 Mar’21 and the base price of the auction is reduced to INR 1,100/t (inclusive of Royalty).
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