- Discount widens up to 17% for Indian fines
- Chinese iron ore port inventory inches up w-o-w
Indian iron ore export prices witnessed a decline this week weighed down by lower buying interest from seaborne buyers and weakening market fundamentals in China. The discount on Indian fines widened further leading to a $4-5/t drop in export prices compared to last week.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index fell by $3.5/tonne (t) w-o-w to $67.5/t FOB east coast on 13 November. Meanwhile, the index stood at $78/t CFR China. No fresh deals were concluded this week due to weak market fundamentals. However, some deals were reported last weekend from both west and east coast miners for Fe54-57% fines. Around 325,000 t of iron ore export deals were recorded in this publishing window.
Discounts widened for Fe 57% fines, averaging 16-17% against the benchmark index.
Market scenario
Exporters noted that the market remains highly volatile and price levels are currently unviable due to higher domestic sourcing costs. “The export market is fluctuating sharply. With domestic procurement costs on the rise, exporting at current prices is not feasible,” said an exporter. Another source mentioned that inquiries from Chinese buyers have slowed significantly amid increasing port inventories and weaker steel margins.
According to market participants, Chinese port stocks have surged in recent weeks, dampening fresh demand for Indian fines. An international trader said, “Chinese mills are cautious and not showing much interest in imported fines. Most are utilising existing inventories or waiting for prices to correct further.”
No confirmed export deals were reported this week as suppliers preferred to hold back cargoes in anticipation of better margins. A trader informed, “We are not concluding any fresh deals at the moment. The market is unstable, and we expect some clarity only after Chinese mills begin their next round of restocking.”
Meanwhile, a few exporters have started moving material to ports as production has picked up post-monsoon, especially along the east coast. Improved dispatches for earlier bookings are also being reported.
A miner commented, “The market may find some direction once Chinese restocking activity begins, but demand for December–January laycan remains weak, which might exert additional pressure on prices.
Chinese spot prices soften w-o-w: The benchmark iron ore fines index fell by $1/t w-o-w to $104/t CFR China on 12 November. Prices softened as mid-grade fines saw limited trades at discounted levels. Port-stock prices fell further on weak buying, as mills stayed cautious and maintained low inventories, opting for need-based purchases. Preference for fines over lumps remained steady, further pressuring the lump market..
DCE iron ore futures drop: Iron ore futures on the Dalian Commodity Exchange (DCE) for the Jan 2026 contract closed at RMB 772.5/t ($112/t) on 13 November, down RMB 5/t w-o-w.
Rationale
- No major deal for Fe 57% was recorded during this publishing window, which not taken for price calculation. Therefore, T1 trade was given 0% weightage in the index calculation. A few deals were already factored into Monday’s assessment. For the detailed methodology, click here.
- BigMint received fourteen (14) indicative prices in the current publishing window, and nine (9) were considered for price calculation as T2 inputs and given 100% weightage.
Iron ore inventories at major Chinese ports were recorded at 139.15 mnt on 13 November, inching up by 1.15 mnt w-o-w, as per data published by SteelHome.
Outlook
Indian low-grade fines export prices may see a correction in the near term amid ongoing volatility in international iron ore prices. Weakening sentiments may weigh on export prices in the near term.
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