- Active demand for single-mine cargo with a premium
- Australian miner raises discount for special low-grade fines
India’s low-grade iron ore fines export market remained firm over the past week, supported by active trading activity linked to fiscal year-end by exporters. Market participants noted that while demand for Indian fines cargoes remains healthy, actual transactions have been limited due to supply-side constraints and cautious exporter behaviour.
Prices, deals
BigMint’s bi-weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $1/t w-o-w to $64.5/t FOB east coast on Thursday, 2 April 2026. Meanwhile, CFR China prices for Indian origin material remain stable w-o-w at $79/t, with easing vessel freight rates.
Around 200,000 t of iron ore (Fe 57%) export deals were recorded in this publishing window by the east coast and Vizag port-based exporters. A few more deals were heard, which concluded on the west coast but are yet to be confirmed by the transacted parties.
On the global front, the Australia-based miner has increased its discount for a special low-grade brand to 10.75% for April deliveries, up from 6.75% in March. In contrast, Indian fines have not seen a comparable increase in discounts, maintaining a relatively stable pricing trend. Current market estimates place the discount for Fe 57% fines at around 19-20% and for Fe 55% fines at 24-25% against the global benchmark fines index.
Market scenario
According to sea market sources, there is steady interest from international buyers, particularly for Fe 57% grade fines. However, the limited availability of such cargoes has restricted deals. An international trader said, “There is decent demand in the seaborne market, especially from Chinese mills, but exporters are not aggressively offering material. This cautious stance has kept trading activity in check despite underlying demand.”
Market participants highlighted that while lower-grade fines, such as Fe 55%, are more readily available, buyers remain selective due to cost considerations. Chinese mills are actively exploring Indian cargoes as an alternative, but a mismatch between bid and offer prices has slowed transaction closures.
“The cost-effectiveness is still a concern for Chinese buyers. Offers are firm, but bids are not matching up, leading to fewer concluded deals,” another international trader said.
Meanwhile, single-mine cargoes from India continue to command a premium, with a few shipments concluded by east coast and souther India-based miners. However, many miners had earlier shifted focus to the domestic market, attracted by better realizations and elevated vessel freight costs impacting export margins in the Odisha region.
Exporters are now holding back cargoes in anticipation of easing freight rates, as current export margins remain under pressure due to volatile market conditions. An exporter mentioned, “Freight is still a major concern. Unless it softens, exports will remain limited despite demand.”
The market may see an uptick in demand, although it remains sensitive to ongoing geopolitical tensions influencing global trade flows and pricing dynamics.
Domestic vs export market
Domestic prices exceeded export realizations by around INR 200/t ($2/t), with the gap being shrinking w-o-w against INR 425/t ($5/t). Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 3,750/t ($41/t) ex-mines, and fell by INR 150/t ($1.5/t) w-o-w on 2 April. Meanwhile, the ex-mines realization in exports from the Barbil region was recorded at INR 3,550/t ($37/t) ex-mines.
Chinese iron ore fines prices rise w-o-w: The benchmark iron ore fines Fe 61% index increased by $1/dmt w-o-w to $108/dmt CFR China on 25 March. Prices rose slightly on firm demand for May cargoes despite ample supply and weak medium-grade demand. Freight and oil supply concerns may disrupt mining, especially for smaller Australian miners. Port stock pressure on prompt prices is unlikely to impact May premiums.
DCE iron ore futures fall: Iron ore futures on the Dalian Commodity Exchange (DCE) for the May 2026 contract closed at RMB 803.5/t ($109/t) on 2 April, decreasing by RMB 8/t ($1/t) w-o-w and RMB 12/t ($1/t) d-o-d.
Rationale
- One (1) deal for Fe 57% was recorded during this publishing window and not taken under calculations. Therefore, T1 trade was given 0% weightage in the index calculation. For the detailed methodology, click here.
- BigMint received sixteen (16) indicative prices in the current publishing window, and fourteen (14) were considered for price calculation as T2 inputs and given rest 100% weightage.
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