- Discount widens for lower grade fines
- Chinese mills sourcing iron ore from port stocks
Indian low-grade iron ore fines export prices remained under pressure due to weak macroeconomic sentiments and widening discounts in the seaborne market. Exporters struggled to secure deals as buyers remained hesitant, particularly after the recent US tariff imposition on imports which dampened sentiments in the global seaborne market.
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index decreased by $2/t w-o-w to $62/t FOB east coast, India, on 3 April 2025. No major export deals were witnessed in this week from the east coast; however, a trader concluded a 55,000 t of iron ore fines deal last week. Another miner also sold some cargos last week, but confirmation is still awaited.
Chinese steel mills have been procuring material from domestic ports instead of opting for Indian fines. A trader commented: “There is weak demand from China as mills are largely sourcing from local stockpiles rather than importing fresh cargoes.”
Meanwhile, Australian miners have widened discounts for their super special low-grade fines (Fe56.7%) to 14.25% for April delivery (12% in March), intensifying competition and adding pressure on Indian exporters.
A miner said, “The market is expected to remain sluggish for the next few days unless there is a significant demand push from mills, which currently appears uncertain.”
The uncertain market dynamics led most Indian exporters to take a wait-and-watch approach, awaiting clearer price signals before committing to new trades. An exporter informed, “Without a significant shift in demand or clearer pricing in the Indian Ocean market, trade activities are likely to remain sluggish.”
Chinese spot prices stable: Benchmark iron ore fines in China remained largely stable w-o-w at $104/t CFR on 2 April as market participants downplayed concerns over steel production cuts. Seaborne trading remained sluggish as some buyers booked portside material ahead of the Qingming holidays in China. Prices remained stable despite concerns over US tariffs and decreased buying interest.
DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for May 2025 contract opened at RMB 789/t ($109/t), remained largely stable on d-o-d and w-o-w basis on 3 April.
Price indicators
- No deals of Fe57% were reported in this publishing window and were not considered for price calculations. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received eighteen (18) indicative prices in the current publishing window, and thirteen (13) were considered for price calculation as T2 inputs and given a 100% weightage.
Outlook
As per BigMint’s analysis, the iron ore fines export market is expected to remain volatile amid uncertain market sentiments. Price fluctuations may also weigh on export deals.
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