SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index increased sharply by around $10/t this week and is currently assessed at $95/t FoB east coast India. Index rose following hike in spot iron ore index this week on tighter supplies & hike in futures. SteelMint’s credible sources confirmed two export deals to have concluded from eastern India based traders so far this week.
Market participants mentioned that with Chinese buyers entering the holiday mood, limited trades were reported this week. However, Indian miners and exporters are quite optimistic for further hike in low-grade ore price post Chinese holidays.
Global iron ore prices have increased sharply this week. Spot iron ore prices increased around $8/t w-o-w to $165.95/t CFR China yesterday. Chinese steel mills are mostly preferring medium grade iron ore fines for cost effectiveness.
However, in the ongoing CNY holidays iron ore availability getting hampered as most of the traders and buyers already on holidays.
Price indicators- Two confirmed trades have been reported this week so far therefore T1 trade was taken into consideration and given weightage 50%.
- One Indian trader has concluded export deal for around 55,000 t (Fe 57% fines) yesterday at $105/t CFR China for early march shipment.
- Another deal for Mar’21 shipment was heard concluded at $110/t CFR China for similar material .
- SteelMint has received seven (7) indicative prices and offers during the publishing window, and all were considered for price calculation as T2 inputs, with an average price of $97/t FoB India.
Rationale: The index has been calculated using an average of T1 and T2 price inputs. Transactions confirmed by either a buyer/seller are designated as T1 input while bids, offers, and indicative prices are designated as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.
Market highlights –
- Spot iron ore fines price increases $14/t w-o-w- Chinese spot iron ore fines (Fe 62%) index has increased further this week to $165.95/t CFR China yesterday against the last week offer at $152.05/t CFR China. However, on daily prices were increased by around $2.5/t yesterday.
- Iron ore futures rose sharply- Dalian iron ore futures’ contract of May’21 closed yesterday at RMB 1071.5/t against RMB 948/t a week before.
- Iron ore stocks at Chinese ports fell marginally- Iron ore inventory at major Chinese ports has decreased by 0.25 mn t this week to 125.9 mn t as per data maintained by SteelHome.
- SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) also decreased by INR 100-200/T this week to INR 3,700-3800/t (ex-mines, incl. Royalty, DMF and NMET).
Leave a Reply