- Buyers seek competitive offers
- Bid-offer gap limits fresh export deals
India’s low-grade iron ore fines (Fe 57%) export prices remained unchanged w-o-w at $57.5/tonne (t) FOB east coast in the week ended 3 September 2026, equivalent to around $72.5/t CFR China.
Market sentiment remained cautious, with buyers seeking competitive offers amid limited fresh buying interest, while exporters continued to hold offers firm due to cost pressures and firmer global iron ore benchmarks. The persistent bid-offer gap kept trading activity subdued and prevented a clear price movement during the week.
“Buyers continue to seek competitive export offers, with a persistent gap between bid and offer levels”, a trader mentioned.
Another source told BigMint, “Exporters remain reluctant to reduce offers sharply amid persistent cost pressures, while freight economics continue to influence the viability of export transactions.”
Rationale
- No deals were reported during the current publishing window; consequently, T1 trades received 0% weightage in the index calculation.
- BigMint received twenty (20) indicative price inputs, of which fifteen (15) qualified as T2 inputs and accounted for the 100% weightage.
Supportive global prices lift export offers
Global benchmark iron ore (Fe 61%) prices remained stable w-o-w at $98/t CFR China on 2 September, as supportive seaborne sentiment and limited availability of some cargoes offset cautious buying interest. Expectations of restocking demand provided additional support, although the price was at a one-week low, according to BigMint data.
However, elevated coke costs and squeezed Chinese steelmaking margins continued to weigh on procurement appetite. Buyers remained reluctant to chase higher-priced cargoes, while sellers held offers firm amid persistent cost pressures, keeping the market balanced.
Domestic prices rise, narrowing export competitiveness
The domestic-export realisation gap widened to around INR 312/t ($3.3/t) this week as export realisations remained unchanged while domestic prices increased. Fe 57% fines export realisations held at INR 3,088/t ($32.7/t), whereas domestic offers rose by INR 50/t ($0.5/t) to INR 3,400/t ($36/t) ex-mines. The widening gap made domestic sales relatively more attractive to sellers, potentially limiting their willingness to commit material for exports amid subdued overseas buying interest.
Meanwhile, January 2027 iron ore futures on the Dalian Commodity Exchange (DCE) fell RMB 2.5/t ($0.4/t) w-o-w to RMB 719.5/t ($107.1/t) on 2 September, from RMB 717/t ($106.7/t) a week earlier. The marginal movement indicates a cautious futures market, with limited conviction among participants amid mixed signals from Chinese steel demand and raw material costs.
Sentiment remained balanced to slightly cautious, as elevated coke costs and pressure on steelmaking margins weighed on buying interest, while expectations of restocking demand and firm seaborne prices provided some support.
Outlook
Indian low-grade iron ore export prices are likely to remain firm but rangebound through September, with limited upside. Firmer global iron ore benchmarks and elevated freight and fuel costs should support exporter offers, while the persistent gap between buyer bids and seller expectations is likely to restrict fresh transactions.
Chinese buyers are expected to remain selective, particularly for Fe 57% fines, amid cautious steel demand and pressure on mill margins. Unless global benchmarks strengthen further or Chinese procurement improves, Indian exporters are likely to maintain current offers rather than make significant downward adjustments.
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