Indian low-grade fines export index up by $6/t w-o-w following global price rebound

SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index increased by around $6/t w-o-w. Prices moved up in the recent deals concluded this week by traders ahead Chinese holidays. SteelMint’s index stands at $78/t FoB east coast India against the last index of $72/t FoB east coast.

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.

Transactions (T1) – Three export deals have been concluded for Fe 56% & 57% grade fines by the traders during this week so far. Out of these, two deals for Fe 57% taken into consideration with an average price of $79/t FoB India. The deals concluded are for Oct shipment for a quantity of around 55,000 t each. The deals have been given a 50% weightage in the final price calculation.

Price indicators (T2) – SteelMint has received three indicative prices and offers during the publishing window. All three inputs were considered for price calculation as T2 inputs, with an average price of $77/t FoB India.

Market overview – Chinese spot iron ore fines (Fe 62%) prices increased yesterday around by $9/t to $123.15/t CFR as against $114/t CFR China almost a week back on 24th Sept. Yesterday spot iron ore fines (Fe 62%) prices increased around by $4/t d-o-d as against $118.95/t CFR China a day before. Spot iron ore price seen from the last couple days attributed to the desperate buying ahead of National holidays begins from 1st Oct.

• According to reports, Australian miners decreased SSF fines (Fe 56.5%) discount for Oct’20 at 5.5% from 9% in Sept’20.
• Iron ore inventory at major Chinese ports increased by around 4.35 mn t in the past two weeks to 122.65 mn t from 118.3 mn t two weeks ago as per Steelhome data. In the current week also inventory has been increased by 2.35 mn t against 120.3 mn t last week.
• According to the market sources, after holidays in China (1st to 8th Oct) high-grade pellets may be more preferable than fines considering the approaching winter season. Sintering cuts and environmental measures may be imposed more strictly post-holidays amid the approaching winter season. Earlier in Tangshan, stringent controls enforced last month before the season starts.