- Discount for Fe 57% fines narrows to 21-23% against benchmark index
- Inquiries improve ahead of Lunar New Year for Mar’26 laycan cargoes
Indian iron ore fines export prices increased w-o-w on 29 January 2026, with a marginal narrowing of discount levels against the global Fe 61% benchmark index. The seaborne market continued to witness cautious sentiment, although sporadic buying interest provided some stability to prices.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export prices inched up by $2/tonne (t) w-o-w to $66/t FOB east coast on Thursday. Meanwhile, the index stood at $76/t CFR China.
A few Indian iron ore exporters managed to secure deals in the overseas market during the assessment window. BigMint recorded export deals for approximately 280,000 t of iron ore, with some deals for the March laycan.
According to sources, the export discount for Fe 57% fines narrowed to around 21-23%, while discounts for Fe 55% material increased to nearly 26-27% against the global fines index.
Market scenario
A few export deals for 57% Fe iron ore fines were heard at discount levels of around 22-23%, reflecting slightly improved realisations compared to previous weeks. However, overall demand remained subdued, with buyers showing selective interest rather than aggressive procurement. An international trader stated, “Demand is slow, but buyers are still present at workable levels, especially around $75-76/t CFR China.”
Market sources noted a clear preference among buyers for single-mine cargoes, citing consistent quality and better downstream usability. In contrast, blended fines continued to face weaker buying interest in the seaborne market.
An exporter informed BigMint, “Buyers are cautious about blended material due to quality variability, while single-mine cargoes are finding relatively better traction.”
Some improvement in inquiries was observed ahead of the upcoming Lunar New Year holiday period, particularly for March laycan cargoes. According to sources, this seasonal requirement lent mild support to market sentiment. Additionally, several deals were reported to be under negotiation and are expected to be concluded over the next few days, which could offer further direction to the market.
On the domestic front, iron ore prices in the east coast region remained firm, with miners maintaining their offers. This firmness has resulted in slightly negative margins for exporters, limiting aggressive participation in the export market. A trader said, “Domestic prices are holding strong, making exports challenging at current discount levels.”
Market participants expect the iron ore export index to remain firm next week, supported by the finalisation of ongoing negotiations and incremental demand for near-term shipments.
Domestic vs export market
Domestic prices exceeded export realisations by around INR 300/t ($3/t), with the gap being largely stable w-o-w. Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 4,100/t ($44/t) ex-mines, rising by INR 50/t ($50/t) w-o-w on 29 January. Meanwhile, the ex-mines realisation in exports from the Barbil region rose w-o-w to INR 3,800/t (42/t) ex-mines.
Chinese spot prices stable w-o-w: The benchmark iron ore fines index (Fe 61%) was recorded at $103/t CFR China, stable w-o-w on 28 January. The market saw improved buying interest for medium-grade fines. At Chinese ports, spot prices moved within a narrow range d-o-d, with limited liquidity. Offers remained plentiful, but buying interest was subdued as mills stayed cautious over potential price swings.
DCE iron ore futures rise w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the May 2026 contract closed at RMB 798.5/t ($113/t) on 29 January 2026, rising by RMB 12.5/t ($2/t) w-o-w.
Rationale
- Three (3) deals for Fe 57% was recorded during this publishing window; Two (2) were 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 fifteen (15) indicative prices in the current publishing window, and nine (9) were considered for price calculation as T2 inputs and given 50% weightage.
Outlook
Indian iron ore fines export prices are likely to remain firm next week due to an expected improvement in demand within seaborne market. Additionally, exporters may finalise their deals in preparation for the upcoming Chinese holidays.
Leave a Reply