SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index fell marginally by $1 to $88/t FOB east coast India. Discounts for low-grade ore have widened to 30-35%.
Under the production curbs and low emission, demand for high grade raw material from Chinese steel mills remained robust as per the guidelines given by local authorities. Sintering restriction and better finished steel margin led the procurement of steel mills shifted towards high and medium grade ore.
Hence, the low-grade iron ore demand continues to remain subdued at the current scenario. Discounts for low-grade ore have widened to 30-35%.
Low-grade iron ore demand may remain low for the next two months most probably till May-June 2021 highlighted a trader.
In addition to it, vessel freight rates stable for Supramax vessels from the east coast of India (Paradip port) to China $17-18 against last week.
Rationale:
- Price indicators- No confirmed deal was reported this week. Hence, not considered for price calculation and kept the weightage nil under T1 trade.
- SteelMint has received twelve (12) indicative prices and offers during the publishing window, and eight (8) were considered for price calculation as T2 inputs and given a weightage of 100%.
Market highlights:
Spot iron ore fines price almost stable w-o-w- Spot iron ore fines Fe 62% price range bound this week to $172.35/t yesterday as against $ 172.15/t a week before. On a daily basis also prices were stable yesterday.
Iron ore stocks at Chinese ports increased – Iron ore inventory at major Chinese ports has up to 135.85 mn t this week as compared with 134.3 mn t, a week before as per the data maintained by SteelHome.
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