- Discount widens w-o-w to 20-22%
- 240,000 t export deals recorded
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index rose by $3/t w-o-w to $65/t FOB east coast on Thursday, 7 May 2026. Meanwhile, CFR China prices for Indian-origin iron ore increased by $3.5/t w-o-w to $80/t, with vessel freight rates rising post Chinese holidays.
Prices increased by around $2-3/t following the reopening of the Chinese market after the Labour Day holiday, with some trades concluded at higher levels. Market participants stated that fresh trading activity resumed gradually as Chinese buyers re-entered the market, supporting sentiments in the seaborne iron ore segment.
Prices, deals
Approximately 240,000 t of export deals (Fe 55-57%) was been captured by BigMint, along with a few low-alumina deals from South India. Several more deals are under negotiations and are likely to materialise in the next couple of days.
Market participants indicated that discounts could hover around 20-22% for Fe 57% cargoes and approximately 26-28% for Fe 55% fines.
Market scenario
An exporter commented, “The rise in prices was mainly driven by bullish market sentiment after the holiday period, coupled with stronger global iron ore indices. A few suppliers managed to conclude spot cargo deals at higher levels compared to the previous week, indicating improved buyer confidence.”
However, overall trading activity continued to remain moderate as several participants preferred to monitor market direction before committing to large-volume purchases.
Another exporter mentioned that inquiries from Chinese buyers improved immediately after the holiday break, especially for Fe 57% fines. He added that buyers were showing interest due to recovering steel margins in some regions and expectations of stable downstream demand in the near term.
Most suppliers are currently hedging prices and waiting for further clarity in global iron ore trends before finalising additional cargoes. Freight movement and vessel bookings have started rising after holidays.
An international trader said, “The market is expected to stabilise further in the coming days as regular trading resumes fully in China. They believe that clearer price direction may emerge once more spot deals are concluded, and steel demand indicators become visible after the holiday period.”
Meanwhile, trading activity was largely subdued during the Labour Day holidays, resulting in limited deal closures over the past week. Buyers were mostly cautious and remained on the sidelines amid uncertainty regarding post-holiday demand recovery. However, market participants expect trading momentum to improve gradually in the coming days as steel mills resume procurement and exporters return to the market.
Domestic prices exceeded export realisations by around INR 100/t ($3/t), with the gap narrowed by INR 200/t ($2/t) w-o-w. Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 3,750/t ($40/t) ex-mines, and remained stable w-o-w on 23 April. Meanwhile, the ex-mines realisation in exports from the Barbil region was recorded at INR 3,650/t ($38/t).
Chinese iron ore fines prices rise w-o-w: The benchmark iron ore fines Fe 61% index increased by $4/t w-o-w to $112/dmt CFR China on 6 May. Prices surged amid stronger futures and improved steel market sentiment, driving active trade following the Labour Day holidays (1-5 May). However, buyers remained cautious due to sufficient material availability and expectations of some correction in prices. Demand from Chinese steel mills stayed healthy after the holidays, with occasional preference seen for more competitively priced portside cargoes.
DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract closed higher at RMB 815/t ($118/t) against RMB 793/t ($115/t) on 7 May, increasing by RMB 22/t ($3/t) w-o-w.
Rationale
- One deal for Fe 57% were recorded, which was not taken during this publishing window. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received twenty (20) indicative prices in the current publishing window, and seventeen (17) were considered for price calculation as T2 inputs and given the rest 50% weightage.
Outlook
The Indian fines export market continues to remain firm supported by stronger global iron ore prices and improving post-holiday sentiment, although actual transaction volumes are yet to witness a significant rise.
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