- Spot and futures iron ore indices firm w-o-w
- Exporters in wait-and-watch mode for better price discovery
India’s iron ore export prices remained largely rangebound this week, with limited trading activity reported in the seaborne market. Some exporters managed to conclude deals, though overall sentiment stayed subdued as bid-offer disparities persisted.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index remained largely stable w-o-w to $65.5/t FOB east coast on 28 August.
Some suppliers reported that buyers are offering 19% discounts for Fe 57% fines cargo, while Indian suppliers are quoting discounts closer to 16-17%. This discrepancy is causing negotiations to stall.
Around 140,000 t of lower-grade fines (Fe 54-57%) were booked this week from the east coast. Deals for Fe 57% fines cargoes were under negotiation, and exporters awaited better prices.
Market scenario
Market participants noted that buyers showed selective interest in Fe 57% grade material, but most inquiries are still under negotiation. An exporter informed, “The appetite for Indian low-grade fines is present, but buyers are unwilling to match exporter offers at current levels.”
A few exporters were also observed procuring materials from domestic miners to fulfil ready-to-load cargo commitments. However, rising procurement costs have squeezed exporters’ margins. An international exporter commented, “Domestic sourcing is expensive right now, and it is difficult to align these costs with the current export price range.”
Material availability in the domestic market has been reported to be tight, further weighing on export sentiment. With limited supply and high purchasing costs, exporters are cautious about concluding fresh deals.
A prominent miner from Odisha said, “We shipped our cargo a couple of weeks ago. Currently, we are only selling in the domestic market due to better price realisation. However, traders are active in the market and are waiting for a better opportunity to secure prices for their export shipments.”
On the demand side, trading activity has weakened as bids remain below exporter expectations. As per reports, Chinese mills are not aggressively chasing Indian cargoes at the moment. They are more focused on restocking medium-grade fines from other origins.
Chinese spot prices firm w-o-w: Benchmark iron ore fines prices in China increased by $1/t w-o-w to $102/t CFR on 27 August. Spot trading is centered on mid-grade fines, lifting prices slightly. Buyers showed little preference between Sep and Oct cargoes, reflecting a thin difference. Liquidity remained thin amid production cuts and earlier restocking, while squeezed mill margins kept purchases need-based and shifted demand away from high-grade fines.
DCE iron ore futures up d-o-d: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract opened at RMB 790/t ($108/t) on 28 August, showing a decent hike on d-o-d.
Rationale
- One deal for Fe 57% was recorded during this publishing window, and hence, this category was not taken for price calculation. Therefore, T1 trade was given 00% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received seventeen (17) indicative prices in the current publishing window, and fourteen (14) were considered for price calculation as T2 inputs and given 100% weightage.
Iron ore inventory at Chinese ports fell by 0.77 mnt w-o-w at 130.33 mnt on 28 August, as per SteelHome data.
Outlook
According to BigMint’s analysis, the market remains slow-moving with moderate demand for Indian low-grade ore. Participants expect the near-term trend to stay subdued unless buying momentum from China improves or procurement costs ease in the domestic market.
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