SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index has moved down sharply by $7/t to $82/t FOB east coast India . Iron ore fines price has seen sharp fluctuations in last one week on tightening environmental curbs in China, resulting in preference of high grade ore/pellets. Thus, bids for low-grade ore have come down drastically in a week’s time.
In such a scenario, most of the buyers and sellers are reluctant to trade, hence putting prices under pressure. The majority of Indian miners and exporters who were planning to offer cargo this week are now expected to offer material next week considering price volatility.
In a confirmed trade heard, Odisha’s leading merchant miner booked a parcel of iron ore fines (Fe 57%) at $106-107/t CFR China for Apr’21 shipment. The deal was heard to have been concluded towards the beginning of this week.
“Discounts for Indian low-grade fines have increased by around 3-4% in a week’s time frame. Tangshan production restrictions are much stringent than expected, which has adversely impacted the Indian low grade fines export prices”, shared an Odisha based exporter.
Rationale:
- Price indicators- one confirmed deal was reported, and given a weightage of 50% under T1 trade.
- SteelMint has received seven (7) indicative prices and offers during the publishing window, and six (6) were considered for price calculation as T2 inputs and given a weightage of 50%.
Market Highlights:
Spot iron ore fines price down $6.5/t w-o-w- Spot iron ore fines Fe 62% price decreased by around $6.5/t w-o-w. The Fe 62% fines price stood at $159.55/t yesterday as against $ 166/t a week ago. However, on a d-o-d basis, prices have come down further by around $1/t.
Iron ore futures fall – DCE’s most-traded May iron ore futures contract today down in today’s closed price at RMB 1,067.5/t, against RMB 1,089/t, a week ago closing.
Iron ore stocks at Chinese ports decrease marginally- Iron ore inventory at major Chinese ports has decreased to 133.65 mn t this week as compared with 133.85 mn t, a week before as per the data maintained by SteelHome.
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