SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index has moved up sharply by $8/t to $90/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 and pellets. In such a scenario, most of the mills in northern China are prefering high grade ore on better realization backed by higher steel prices and robust demand.
“Discounts for Indian low-grade fines have been increasing these days on falling bids from China, highlighted a trader.
In addition to it, vessel freight rates have eased out. Rates for Supramax vessels from east coast of India to China has come down to $19 against $25 last week.
No confirmed trade for Indian low grade fines export was heard this week. However, one unconfirmed deal was concluded by a leading Odisha based miner for iron ore fines (Fe 57%) at $108/t CFR China for Apr’21 shipment. The deal was heard to concluded towards the beginning of this week. But this was not considered for price calculation.
Rationale:
- Price indicators- No confirmed deal was reported, and given a weightage of 0% under T1 trade.
- SteelMint has received Thirteen (13) indicative prices and offers during the publishing window, and ten (10) were considered for price calculation as T2 inputs and given a weightage of 100%.
Market highlights:
Spot iron ore fines price increases $4.5/t w-o-w- Spot iron ore fines Fe 62% price increased by around $5.5/t w-o-w. The Fe 62% fines price stood at $164.75/t yesterday as against $160.2/t a week ago. However, on a d-o-d basis, prices have fallen by around $2/t. Few more steel mills in Tangshan to Grade D and instructed to cut emissions by 50% because of which some sources expect dampening of iron ore demand.
DCE’s most-traded Sept iron ore futures contract closed today at RMB 975.5/t.
Iron ore stocks at Chinese ports rise – Iron ore inventory at major Chinese ports has increased to 134.35 mn t this week as compared with 133.65 mn t, a week before as per the data maintained by SteelHome.
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