- Discount widens to 25-27% for Fe 57% fines
- Exporter put offers in hold
Indian iron ore export prices declined sharply by $4/t w-o-w on Thursday. India iron ore fines export prices witnessed a sharp decline this week amid continued weakness in the global seaborne market and widening discounts for low-grade materials in China.
Rationale
- Zero deals for Fe 57% were recorded during this publishing window. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received twenty three (23) indicative prices in the current publishing window, and sixteen (16) were considered for price calculation as T2 inputs and given the rest 100% weightage.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index dropped by $3.5/t w-o-w to $56.5/t FOB ( equivalent to $72/t CFR China) east coast on Thursday, 28 May 2026.
According to market participants, discounts for Fe 57% fines widened to around 25-27% against the global fines index.
Market scenario
The recent increase in discounts for Australian low-grade fines to nearly 19% in the Chinese market has significantly pressured Indian iron ore fines prices, particularly for lower Fe grade cargoes. Traders said weak buying interest and high port inventories in China continue to weigh on market sentiments.
An international trader said that demand in the seaborne market remains sluggish, while exporters are becoming increasingly cautious about offering cargoes aggressively.
An exporter said, “Buyers are waiting for further corrections as Chinese steel margins remain under pressure. Many exporters are now hesitant to conclude deals at current levels.”
Exporters also highlighted that current export prices are not workable for several suppliers as procurement costs in the domestic market were higher. Another exporter added, “Most of the cargoes were sourced when market levels were firm. Current export realizations are not viable for us.”
Market participants noted that even the limited availability of 57% Fe iron ore fines in the market has failed to support prices. Prices for Fe 57% cargoes have continued to decline despite restricted supply.
Meanwhile, Fe 55% fines are facing severe pressure due to poor demand and widening discounts in the international market.
Some exporters have also temporarily withheld offers and refrained from selling in the export market, expecting a possible recovery in prices in the coming weeks. “A few suppliers are holding back cargoes as they believe the current market is oversold and may stabilize later.”
Chinese iron ore fines prices fall w-o-w: The benchmark iron ore fines Fe 61% index declined by $3/t w-o-w to $105/dmt CFR China on 26 May. Prices dropped as additional cargoes of low-grade Australian fines entered the Chinese portside market, weighing on sentiment despite expectations of firm steel production in China. Inventories of low-grade iron ore remained elevated, with abundant Indian fines cargoes and unsold Australian low-grade materials continuing to pressure the market.
DCE iron ore futures decline w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract decreased by RMB 13/t ($1.5/t) w-o-w at RMB 780/t ($115/t) on 28 May.
Outlook
BigMint expects overall market outlook remains bearish in the near term. Prices expected to remain under pressure due to elevated Chinese portside inventories, weak seaborne demand, and continued discounts for Australian low-grade fines in China.
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