SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index increased by $3 to $91/t FOB east coast India. Demand for low grade ore continues to remain weak in China with discounts for low-grade ore widening to 34-35%. Three deals have also been recorded by SteelMint this week from India.
Recent trades –
- One of the major Odisha based merchant miners sold around 50,000 t (Fe 57% fines) at $113/t CFR China towards the beginning of the week.
- In another deal concluded by a Odisha based trader concluded deal yesterday for one cargo for Fe 57% fines at $106/t CFR China.
- Another deal heard for 55,000 t Fe 57% fines has been concluded from Vizag at $89-91/t FOB India has also been reported this week.
Under the production curbs and low emission from the sintering process led the demand for medium and high-grade raw material decent in China on robust margin in finished steel. However, low-grade demand has been adversely affected as the steel mills are started shifting towards high grade ore.
Vessel freight rates continue to stable for Supramax vessels from the east coast of India (Paradip port) to China $17-19 against last week.
Rationale:
- Price indicators- Three confirmed deals were reported this week. Hence, two considered for price calculation and kept the weightage 50% under T1 trade.
- SteelMint has received twelve (12) indicative prices and offers during the publishing window, and seven (7) were considered for price calculation as T2 inputs and given a weightage of 50%.
Market highlights:
Spot iron ore fines price up sharply w-o-w- Spot iron ore fines Fe 62% price increased sharply this week by $8.5 to $185.75/t yesterday as against $ 177.3/t a week before. On a daily basis also, prices increased by $2/t.
Iron ore stocks at Chinese ports stable- Iron ore inventory at major Chinese ports remain stable at 135.9 mn t this week as compared with 135.85 mn t, a week before as per the data maintained by SteelHome.
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