- Discounts may open at 20-21% for Fe57% fines
- Domestic realizations higher tan exports
Indian iron ore fines prices remained largely stable this week, although sentiment in the seaborne market continued to stay weak amid subdued trading activity following the Chinese holidays.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export prices inched up by $1/tonne (t) w-o-w to $61/t FOB east coast on 26 February 2026. Around 55,000 t fines export deals heard in this publishing window.
Some sources have mentioned that discounts may open at 20-21% for Fe57% fines based on global prices.
Market participants noted that buying interest from Chinese traders has been limited, with buyers reportedly seeking discounts of around 23% on post-holiday cargoes. However, no deal has been concluded at these levels so far.
Market scenario
Exporters are exercising caution, as the prevailing price levels and steep discounts are not considered viable. “At the current discount, it does not make commercial sense to conclude deals. Our domestic material sourcing at a higher cost, currently aligning with recent export prices”, said an Odisha-based exporter.
Many Indian-origin cargoes remain unsold in the secondary market at Chinese ports, further pressuring sentiment and limiting fresh inquiries.
Traders indicated that Chinese mills are not aggressively procuring Indian-origin fines due to elevated port inventories and sufficient in-plant stock. According to market estimates, iron ore inventory at Chinese ports has reached around 175-180 million tonnes, one of the highest levels seen in recent years. An international trader informed, “With such high inventory, mills are in no rush to restock. They are operating on a need-based procurement strategy.”
Despite the current slowdown, some participants expect trading activity to gradually return to normal in March. A few exporters are reportedly exploring blending opportunities and alternative cost structures to improve realizations and close pending cargoes.
Another international trader commented, “We anticipate some movement next month, especially if blending economics work in favour of Indian fines.”
Market participants are closely watching upcoming announcements from the Chinese market regarding infrastructure stimulus and broader economic measures. Any supportive policy signals from the anticipated ministry meetings next week could lend short-term bullish momentum to the market, although sustained recovery will depend on actual demand revival.
Domestic vs export market
Domestic prices exceeded export realisations by around INR 650/t ($7/t), with the gap being largely stable w-o-w. Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 3,950/t ($43/t) ex-mines, down INR 100/r w-o-w on 26 February. Meanwhile, the ex-mines realisation in exports from the Barbil region was recorded at INR 3,300/t (36/t) ex-mines.
Chinese iron ore fines prices firm w-o-w: The benchmark iron ore fines Fe 61% index edged up by $3/dmt w-o-w to $99/dmt CFR China on 23 February. Prices were supported by renewed market activity after the holiday period. Gains were driven by active trading and improved sentiment after Shanghai eased home-buying rules. However, portside trading remained limited as mills delayed restocking, while higher trader offers curbed buying interest.
DCE iron ore futures price: Iron ore futures on the Dalian Commodity Exchange (DCE) for the May 2026 contract closed at RMB 748.5/t ($109/t) on 26 February, with remaining largely stable d-o-d
Rationale
- One (1) deal 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 fifteen (15) indicative prices in the current publishing window, and ten (10) were considered for price calculation as T2 inputs and given rest 100% weightage.
Outlook
India’s iron ore fines export prices are expected to remain volatile, with fluctuation in global fines prices.
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