India: SteelMint’s low-grade iron ore export index up $6/t on active trade

SteelMint’s weekly index of India’s low-grade iron ore fines (Fe 57%) exports stood at $83/tonne (t) FOB east coast on 23 February, 2023, up $6/t w-o-w. Export prices improved on rising futures and spot prices w-o-w along with positive buying interest amid falling steel margins in China.

As per latest reports, this week has witnessed some active portside trading, with traders buying cargoes in the Tangshan and Shandong areas.

SteelMint heard of deals of around 165,000 t of low-grade iron ore fines (Fe 57%) at $96-99/t CFR China. Later in the week, no active deals were reported, indicating that the market had softened slightly.

India’s iron ore export shipments were recorded at 654,380 t in the third week of February in comparison with 747,857 t in the second week, as per the vessel line-up data maintained with SteelMint.

Price indicators

• Three deals were concluded this week so far out of which two were taken for price calculation under T1 trade and given 50% weightage  Click here for the methodology.
• SteelMint received twelve (12) indicative prices, bids, and offers in the current publishing window and all were considered for price calculation as T2 inputs and given 50% weightage.

Market highlights

• Global iron ore prices up w-o-w: The benchmark Fe 62% fines index moved up by $7/t w-o-w on 22 February to $130.6/t CFR China as against $123.6/t a week ago. The real estate market is expected to strengthen and rebound with the help of more stimulative Chinese policies. The seaborne buying volume was modest.
• DCE iron ore futures rise: DCE iron ore futures’ May 2023 contract increased to RMB 908.5/t ($132/t) on 23 February, up RMB 28.5/t ($4/t) as against RMB 880/t ($127/t) on 16 February. DCE iron ore futures contract started with a hike of RMB 25/t ($4/t) but fell by RMB 11.5/t mid-week to RMB 908.5/t due to sluggish market demand. However, the market has been uptrending compared to the previous week.
• Port inventories in China rise: Iron ore inventory at major Chinese ports increased by 2.55 mnt to 140.9 mnt on 16 February compared to 138.35 mnt last week, as per SteelHome data.