- Australian miners narrow lower-grade discount to 10%
- Sellers get active inquiries but struggle to fulfil shipments
Indian iron ore prices in the seaborne market remained firm this week, supported by stronger global benchmarks and an uptick in market sentiment. Some sellers were successful in securing deals. However, other exporters continued to face challenges in concluding trades, as domestic supply constraints weighed heavily on availability.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index remained largely stable w-o-w at $65.5/t FOB east coast on 4 September. The hike in vessel freights kept FOB prices stable, while CNF tags rose w-o-w.
Discounts for Indian-origin 57% Fe fines were at around 17-18% in the overseas market, though negotiations remain ongoing. Notably, Australian miners narrowed the low-grade special fines discount to 10% for September delivery, compared to 10.75% in August.
Around 220,000 t of lower-grade fines (Fe 57%) were booked this week from the east coast amid active buying interest. However, some deals were under negotiation, as exporters were asking around $80/t CFR China, following the uptrend in global iron ore market sentiments.
Market scenario
“We are getting active inquiries from buyers, but deals are stuck due to sourcing difficulties in the domestic market,” said an eastern India-based exporter.
Market participants noted that miners were struggling to maintain output, as heavy monsoon rains disrupted both production and dispatches. “Domestic prices are elevated, and at the same time, material availability is tight. Fulfilling deliveries has become difficult in the current situation,” another exporter highlighted.
Meanwhile, demand trends in China offered some support, with restocking activities picking up and October delivery cargoes witnessing increased interest. An international trader observed, “China’s buying is moderate but steady, which is keeping market sentiment balanced.”
Despite supportive global prices, India’s export volumes have remained lower in recent weeks, as strong domestic demand led to material being diverted to local buyers. Steelmakers actively booked material, though on a need basis, further limiting export availability.
Sources said that while a few deals were heard, most negotiations are still underway, reflecting the cautious mood among participants.
Chinese spot prices strengthen w-o-w: Benchmark iron ore fines prices in China increased by $2/t w-o-w to $104/t CFR on 3 September. The price rise came despite thin trading in medium-grade fines, as demand for October cargoes is expected to strengthen soon. Rising prices made steel mills cautious, with iron ore traders receiving fewer inquiries for spot cargoes and some steelmakers still purchasing only as needed.
DCE iron ore futures remain supportive d-o-d: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2026 contract opened at RMB 791.5/t ($111/t) on 4 September, showing stability w-o-w.
Rationale
- Four (4) deals for Fe 57% were recorded during this publishing window, and hence, this category was taken for price calculation. Therefore, T1 trade was given 50% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received seventeen (17) indicative prices in the current publishing window, and twelve (12) were considered for price calculation as T2 inputs and given 50% weightage.
Iron ore inventory at Chinese ports rose by 1.19 mnt w-o-w to 131.52 mnt on 4 September, as per SteelHome data.
Outlook
According to BigMint’s analysis, the market may remain slow in the coming days as exporters are yet to complete their full shipments. With supply-side challenges persisting, exporters are expected to face hurdles in meeting overseas demand in the near term.
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