Indian low-grade fines export index up marginally in a recent deal

SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index increased slightly by around $1/t. Index stands at $89/t FoB east coast India. Market participants cited modest demand for low-grade ore from Chinese mills amid restocking before New year Chinese holidays. Steel mills in China are using low-grade fines for blending with high-grade ore, sources mentioned.

Price indicators – As per the sources one confirmed export deal was heard for 54,000 t iron ore fines (Fe 57%) at $88/t FOB, India this week. Therefore, it was considered for calculation of index and weightage given 50%.

However, towards the end of last week three shipments of low-grade iron ore for Fe 57% fines were concluded at $104/t CFR, China for Jan shipments, sources have reported SteelMint.

SteelMint has received five indicative prices, offers and bids during the publishing window and all were considered for price calculation as T2 inputs, with an average price of $89/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 –

• Chinese spot iron ore fines index increased by $6/t- Chinese spot iron ore fines (Fe 62%) increased significantly by around $ 6/t on a weekly basis and stood at $ 157.05/t CFR China yesterday against $150.75/t a week before. On a daily basis spot index increased around $1.3/t yesterday against $155.75/t a day before.
• Indian low-grade fines export index up marginally in a recent deal Dalian iron ore futures’ contract of May’21 closed at RMB 1026.5/t today against RMB 971 a week before.
• Iron ore stocks at Chinese ports inch up slightly – Iron ore inventory at major Chinese ports has been decreasing since last one month but it has shown a slight increase this week. Iron ore inventories this week stands at 126.35 mn t as per data maintained by SteelHome.
  
• SteelMint’s assessment for Indian low-grade iron ore fines (Fe 57%) increased by INR 100-200/t to INR 3,000-3,200/t (ex-mines, incld. Royalty, DMF and NMET).