- Some active deals concluded from India
- Discounts for Fe57% fines hover at 20%
The Indian iron ore fines export market remained largely stable this week, with moderate trading activity reported. A few exporters managed to conclude deals earlier in the week for end-May shipments, but overall market activity was subdued as sellers adopted a cautious approach.
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $62/t FOB east coast, India, on 22 May. The exporter managed to close deals with buyers earlier this week amid the global iron ore fines price rally.
Exporters dealing in Fe 57% fines reportedly offered discounts of 20-21% compared to the global index, which is largely similar to last week. They were pointed to an overall positive trend, with deals for nearly 430,000 t concluded during the recent price rally. However, few deals are yet to be confirmed from the selling parties.
Some Indian exporters managed to strike deals at negotiable prices supported by moderate demand from Chinese steel mills, which have shown interest in procuring low-to mid-grade cargoes. This demand offered limited support to exporters, especially those holding inventories sourced at relatively higher domestic prices. Consequently, many market participants preferred to hold back cargoes in anticipation of better realisations in the near term.
An exporter informed, “There is interest from Chinese buyers, but the current price levels are not very attractive for Indian exporters, given the cost of domestic procurement. Most are watching the market closely. However, some deals were witnessed in the market as a few sellers offloaded their cargo following the expectation of fluctuation in prices in the coming days.”
Ongoing negotiations for additional cargoes are underway, with a few participants expecting closures in the coming days. However, the price levels are not likely to see significant movement due to the balanced demand-supply scenario and moderate buying interest.
Meanwhile, some miners’ ready-to-load cargo is getting premium from the buyers for May-end or early-June shipment, further giving some support in the market.
Another exporter mentioned, “We are in talks with a few seaborne buyers, but the deals are stuck due to pricing gaps. We are waiting for some improvement and will finalise the deals shortly.”
Chinese spot prices down w-o-w: Benchmark iron ore fines in China decreased by $3/t w-o-w to $100/t CFR on 21 May. Market liquidity was low amid thinner trading activity, with demand easing following the macro-economic stimulus boost of last week. High-grade demand was weak, as mills turned to mid-to-low grade blends. Although there remained some positivity regarding US-China trade negotiations, overall, the recent tariff reductions failed to sustain the bullish momentum.
DCE iron ore futures down w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2025 contract inched down RMB 9.5/t ($1/t) w-o-w to RMB 727/t ($101/t) on 22 May. Similarly, not much change is seen in the prices on d-o-d basis today.
Rationale
- Two (2) deals for Fe 57% were noted during this publishing window, and one (1) was considered for price calculations. Therefore, T1 trade was given 50% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received sixteen (16) indicative prices in the current publishing window, and ten (10) were considered for price calculation as T2 inputs and given 50% weightage.
Iron ore inventories at major Chinese ports fell by 2.6 mnt w-o-w to 134.4 mnt on 22 May, according to data published by SteelHome.
Outlook
As per BigMint’s analysis, iron ore export prices are expected to hover around current levels, with minor fluctuations, as participants closely monitor buyer appetite and future price trends.
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