SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index has remained stable at $89/t FoB east coast India. The firm demand of low-grade fines is expected to continue, as coke prices are seen declining, Chinese coke prices began to decline after the Lunar New Year holiday, allowing users to go for medium/low-grade ore.
However, lower blast furnace utilization rates and uncertainty of future production curbs have inhibited iron ore prices from growing further.
“Very few trades were reported so far this week. The majority of miner/traders are likely to offer parcels next week as they are expecting a price rebound “, shared an eastern India-based market source.
Rationale:
Price indicators- one confirmed trade was gathered by SteelMint, and given a weightage of 50% under T1 trade. An eastern India based miner concluded a deal for 55,000t fines (Fe 57%) at $114-115/t CFR China for end Mar/early Apr shipment.
SteelMint has received eleven (11) indicative prices and offers during the publishing window, and five (5) were considered for price calculation as T2 inputs and given a weightage of 50%.
- Spot iron ore fines price down $5/t w-o-w- Spot iron ore fines Fe 62% price decreased by around $5/t w-o-w. The Fe 62% fines price stood at $165.85/t yesterday as against $ 171.05/t a week ago. However, on a d-o-d basis, prices have remained largely stable as compared to $166.30/t assessed on 16th Mar.
- Iron ore futures close higher – DCE’s most-traded May iron ore futures contract today closed higher at RMB 1,089/t, up against RMB 1,068/t, yesterday’s closing.
- Iron ore stocks at Chinese ports increase further- Iron ore inventory at major Chinese ports has increased to 133.85 mn t this week as compared with 130.9 mn t, a week before as per data maintained by SteelHome.
- Domestic offers of low-grade iron ore stand stable- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) is assessed at INR 3,500-3,800/t (ex-mines, incl. Royalty, DMF and NMET) , stable on a weekly basis.
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