SteelMint’s weekly export index for low-grade Indian iron ore fines (Fe 57%) remains stable, w-o-w, at $35/t FOB east coast India. The Indian iron ore exports market sent out mixed signals, with a few traders showing interest while others waiting for a price correction.
Steel mills in China were heard going into maintenance and reducing operating hours amid the current power crisis.
Traders continued to show interest in procuring cargoes, which led to a rise in spot iron ore prices prices Fe 62% on 28 Sep’21 to $114.80/t CNF China. Although some traders appeared to be more confident on the near-term price outlook, uncertainties around production curbs after the Golden Week holidays in Oct kept end-users away from the seaborne market.
Also, even though a few mills might have restocking needs for Oct, they are not preferring to buy at current levels and waiting for the holidays to get over, as they anticipate that prices could inch down further.
Firm buying interest was witnessed for Nov-loading cargoes compared to Oct due to the upcoming holidays. However, the curbs on crude steel production, coupled with disruptions caused by power usage controls at several provinces in China, paint a rather dismal outlook for raw material demand.
As per data maintained with SteelMint, total iron exports from Indian ports for the week (19 Sep-25 Sep) were recorded at 57,500 t compared to 128,044 t a week ago.
Rationale:
- Price indicators- No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
- SteelMint received eight (08) indicative prices and offers during the current publishing window, and seven (07) were considered for price calculation as T2 inputs, given a weightage of 100%.
Market highlights:
- Spot iron ore fines prices up by around $7, w-o-w: The spot price of benchmark iron ore Fe 62% fines increased w-o-w to $114.80/t CFR China on 29 Sep. Also, the prices picked up d-o-d by $2.45/t. Iron ore futures in China rose by 4% on 30 Sep on strong restocking demand ahead of the Golden Week holidays. DCE iron ore futures’ Jan’22 contract closed at RMB 721.5/t ($112) (+RMB 27.5).
- Iron ore stocks increase at Chinese ports: Iron ore inventory at major Chinese ports increased to 133.5 mn t this week as against 130 mn t in the preceding week, as per data maintained by SteelHome.
- SAIL iron ore auction receives no bids: SAIL had scheduled an auction for 40,000 t iron ore tailings (Fe 59.8%) from its Barsua iron ore mines on 28 Sep. The base price for the material was INR 4,990/t FOR inclusive of royalty, DMF, NMET and the additional amount mentioned in MMDR Amendment Act. The tender failed to fetch any response.
- OMC iron ore e-auction: OMC has scheduled a 100,000 t iron ore fines (Fe 58%) e-auction from its Koira mines on 1 Oct. The base price for the auction has been set at INR 4,000/t (ex-mines basis, including royalty).
- Discount on low grade iron ore increased: A major Australian iron ore miner has increased the discount for sub-grade iron ore or super special fines (SSF) on the back of falling overseas demand and subdued buying activities in China. According to sources, the miner has increased the discount for SSF for Oct’21 to 40% against 30% in Sep, as per latest reports.
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