- Chinese mills focus on higher grades, pellets due to cost efficiency
- Exporters hold back cargo as discounts widen, sourcing costs remain high
The Indian iron ore fines export market remained under pressure in the week ended 4 June 2026 as weak buying interest from Chinese steel mills and declining global iron ore prices continued to weigh on sentiment. Limited trading activity was recorded, with a widening gap between bids and offers preventing the conclusion of fresh export deals.
Rationale
- Zero deals for Fe 57% were recorded during this publishing window. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received twenty-one (21) indicative prices in the current publishing window, and nineteen (19) were considered for price calculation as T2 inputs and given the rest 100% weightage.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index dropped by $2/t w-o-w to $54.5/t FOB (equivalent to $70.5/t CFR China) east coast on Thursday, 4 June 2026.
Trades remained absent, with BigMint recording no deals in this publishing window. A few deals were heard to be under discussion, but final confirmation regarding their conclusion was yet to be received.
Discounts for Indian Fe 57% fines were assessed at around 27-28%, while lower-grade Fe 55% fines were heard at 32-34% discount during the week.
Market scenario
According to international traders, Chinese mills are currently focusing on higher-grade iron ore fines and pellets due to their better cost efficiency. Elevated coal prices have significantly squeezed steelmakers’ margins, encouraging buyers to prioritize higher-grade feedstock that offers improved blast furnace productivity and lower overall production costs.
An international trader said, “No significant export deals have been concluded from India in recent weeks. There is a considerable mismatch between buyers’ bids and sellers’ expectations. Additionally, the absence of large single-mine cargoes has further restricted trading activity.”
Exporters noted that current market conditions are unfavourable for fresh sales. One exporter stated, “We are holding back export sales as discounts have widened sharply while domestic sourcing costs remain relatively high. Current export realizations are not attractive enough to justify aggressive selling.”
Meanwhile, several miners have increasingly shifted their focus toward the domestic market, where demand remains comparatively stable. Some bulk exporters continue to ship cargoes against previously concluded contracts, but fresh bookings remain scarce.
Market participants also highlighted growing competition from Australian material. Fe 56-57% Australian special fines were reportedly offered at discounts of around 20%, leaving no room for Indian material to compete. A few traders further indicated that Australian miners may soon introduce Fe 55% fines as a new product offering to Chinese buyers, which could exert additional pressure on Indian fines exports.
An exporter from Odisha stated, “The market is currently in a wait-and-watch mode. Most participants are not rushing to sell cargoes at current levels and are hoping for improved pricing before committing to new deals.”
Chinese iron ore fines prices fall w-o-w: The benchmark iron ore fines Fe 61% index dropped by $2/dmt w-o-w to $103/dmt CFR China on 3 June. The downturn was mainly attributed to the market’s renewed focus on weak underlying demand fundamentals after sentiment in the ferrous segment had remained temporarily supported by developments in the coking coal market. With the impact of coal-related supply concerns gradually fading, market attention shifted back to softer steel demand expectations in China.
DCE iron ore futures decline w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract decreased by RMB 7/t ($1/t) w-o-w at RMB 773/t ($114/t) on 4 June.
Outlook
BigMint expects trading activity to remain under pressure in the next few days amid weak market fundamentals, subdued Chinese demand, widening discounts, and persistently high coking coal prices.
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