- Discount expect to rise for November
- Few miners cargo concludes this week
Indian iron ore export prices remained supportive this week, tracking the improvement in global iron ore prices and a few trades concluded by exporters. Market participants noted that buying interest has slightly revived from buyers, particularly from China, even though overall trading activity stayed limited.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $2/tonne (t) w-o-w to $72/t FOB east coast on 30 October. Around 165.000 t iron ore export deals were recorded by BigMint this week while few deals were heard under negotiations.
Exporters mentioned that discounts for Fe 57% fines remained stable at around 15% against the benchmark index. Few bids were received at 16% for the traders cargo but deals are yet to be concluded of the Fe 57% grade fines.
Market scenario
According to a trader, “Some buyers have shown renewed interest after a consistent rise in global iron ore indices, but most deals are still under negotiation and have yet to be finalized. Export offers from India were largely stable this week, supported by steady demand and limited spot availability.”
A few miners from Odisha and south India reportedly closed deals in the past couple of days, while another Odisha-based miner has scheduled a low-grade iron ore export tender to liquidate its previous unsold cargo. Participants said that the tender outcome will indicate the near-term market sentiment for low-grade fines.
However, industry sources expect the price support to be short-lived as discounts for low-grade Indian fines are likely to widen next week. “A few Australian miners have started offering higher discounts for November delivery cargoes amid supply normalization in China. This is expected to put downward pressure on Indian export offers,” said a market participant.
If global iron ore prices stabilize at current levels while discounts expand, Indian fines prices may correct marginally in the coming days. Exporters are monitoring market movements closely before finalizing new deals.
“Buyers are cautious about fresh bookings, anticipating a possible softening in prices next week,” commented another international trader.
Chinese spot prices rise w-o-w: The benchmark iron ore fines index rose by $3/t w-o-w to $108/t CFR China on 29 October. Prices were supported by steady mid-week liquidity. Market sentiment stayed slightly positive as rising iron ore imports supported confidence. However, buyers remained cautious, watching steel margins and stock levels. With Tangshan’s production limits lasting until 3 Nov, most mills bought only as needed, waiting for clearer market signals.
DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for the Jan 2026 contract closed at RMB 799.5/t ($113/t) on 30 October, up RMB 11/t d-o-d.
Rationale
- Two (2) major deals for Fe 57% were recorded during this publishing window and one was taken for price calculation. Therefore, T1 trade was given 50% weightage in the index calculation. A few deals were already factored into Monday’s assessment. 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 50% weightage.
Iron ore inventories at major Chinese ports recorded at 135.5 mnt on 30 Oct, inching up by 2 mnt w-o-w as per data published by SteelHome.
Outlook
BigMint notes that while this week saw mild support in export sentiment, the outlook remains bearish for the coming week, with the market expected to trend lower if global prices fail to sustain their current momentum.
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