SteelMint’s weekly low-grade iron ore fines (Fe 58/57%) FoB India index stable today at $78/t FoB India in the recent deals concluded. SteelMint’s last week index stood at $78/t FoB India. After decent deals of around five shipments being reported early this week, sentiments have softened following a steep decline in the Chinese futures & spot prices. In addition to it, upcoming holidays in China are likely to keep demand slow.
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) – Total five shipments have been concluded for Fe 57% grade fines from the traders (India Thriveni fines, SM Niryat and Tata International) at the beginning of this week at around $83/t FoB India. The deals have been given a 50% weightage in the final price calculation.
Price indicators (T2) – SteelMint has received four indicative prices and offers during the publishing window. Only three inputs were considered for price calculation as T2 inputs, with an average price of $74/t FoB India.
Market overview – Spot iron ore fines (Fe 62%) prices in China decreased further today around $2/t to $122.05/t CFR China today. In the last two days spot prices have decreased by around $7/t against $128.55/t CFR China two days back.
As per the market sources report to SteelMint, approaching one week national holidays in China (1st to 8th Oct) has led to weakening in futures. Most of the steelmakers have bought and stocked ore. Hence with the steep decline in iron ore & steel futures and lowered buying interest, spot iron ore prices have weakened this week.
Iron ore inventory at major Chinese ports decreased w-o-w at 118.3 mn t against 118.95 mn t a week ago as per Steelhome data.
It is expected that in the upcoming days market may see the softening market sentiments for the low-grade iron ore fines exports. Currently, no firm bids for Indian low-grade fines were heard after the global price cut, however, Indian low-grade fines export indications now stand at $87-88/t, CFR China, highlighted traders.
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