- Exporters wait for better pricing for their cargo
- Muted market sentiments keep trades away from market
India’s iron ore fines export market remained under pressure in the week ended 19 February, weighed down by the ongoing Chinese New Year holidays and softer global sentiment. Export prices declined by around $1-2/t week-on-week, tracking the downturn in global iron ore indices and subdued seaborne demand.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export prices inched down by $2/tonne (t) w-o-w to $60/t FOB east coast on Thursday.
The trading activity was muted, so no trades have been recorded in the sea market during this publishing window. Market participants are absent due to holidays, resulting in a lack of clarity regarding discounts in the market. Some sources have mentioned that discounts may open at 21-23% for Fe57% fines based on global prices after the holidays.
Market scenario
Market activity in the seaborne segment was largely muted, as major Chinese buyers stepped away from fresh inquiries during the holiday period. According to exporters, most Chinese steel mills had already completed their pre-holiday restocking, leaving limited immediate buying interest in the spot market.
“Enquiries from China have almost dried up this week. Most mills had covered their requirements before the holidays, so there is no urgency to book additional cargoes,” said an exporter based on the east coast.
Another trader noted that although some offers are being floated, bids remain sparse and not workable at current levels.
Exporters highlighted that current realizations are not viable, especially given the relatively higher cost of sourcing iron ore from the domestic market. An exporter mentioned, “Our procurement costs in India are firm, but the seaborne market is not supporting those levels. At these prices, margins are either minimal or negative.” As a result, many exporters have adopted a wait-and-watch approach, holding back fresh deals in anticipation of improved price indications once Chinese buyers return.
An international trader has reported that there is no activity in the market because major buyers are currently unavailable. Due to the ongoing Chinese New Year holidays, no trading is taking place. We will be able to provide further comments only after the holidays, as there will be no trading opportunities until then.
The broader export market is expected to remain quiet in the near term, with muted inquiries or trading activity until Chinese participants resume operations after the holidays. Market players noted that a clearer price direction will emerge only after full-scale participation returns and post-holiday restocking trends become visible.
Domestic vs export market
Domestic prices exceeded export realizations by around INR 850/t ($9/t), with the gap being widened w-o-w. Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 4,100/t ($45/t) ex-mines, steady w-o-w on 12 February. Meanwhile, the ex-mines realization in exports from the Barbil region fell w-o-w to INR 3250/t (36/t) ex-mines.
Chinese iron ore fines prices drop w-o-w: The benchmark iron ore fines Fe 61% index edged down by $3/dmt w-o-w to $98/dmt CFR China on 16 February. Prices fell as procurement activity in the physical market remained muted ahead of the Lunar New Year holidays, with most mills away from active trading. Meanwhile, prices in Chinese portside markets remained largely stable, supported by limited transactions.
DCE iron ore futures price: Iron ore futures on the Dalian Commodity Exchange (DCE) for the May 2026 contract closed at RMB 754/t ($109/t) on 13 February. No prices were published this week amid the holidays.
Rationale
- No deals for Fe 57% was recorded during this publishing window and not taken under calculations. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received Twelve (12) indicative prices in the current publishing window, and eight (8) were considered for price calculation as T2 inputs and given rest 100% weightage.
Outlook
India’s iron ore fines export segment is likely to stay muted in the near term, with sentiment closely tied to global index movements and the pace of demand recovery in China post holidays.
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