SteelMint: India’s iron ore fines export index rises slightly in recent deals

India’s iron ore export sentiments have witnessed a marginal improvement due to the hike in global iron ore fines index. SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index increased by $0.5/t w-o-w to $96.5/t, FoB east coast India, as per latest reports.

Buying inquiries for low-grade iron ore from China have improved marginally. However, traders cited concerns over additional charges levied at Chinese ports for the period that Indian cargoes have to wait at ports.

Four confirmed deals for Fe 56/57% fines from Odisha for Jun/Jul shipments were confirmed by SteelMint to have been concluded since the end of last week. Each of the deals concluded was 55,000-60,000t in volume.

Chinese spot iron ore fines Fe 62% index on 9th Jun ’21 increased around $2.3/t w-o-w to $213.5/t, CFR China, yesterday. However, on a weekly basis, prices have increased by around $3/t. Hike in futures have supported spot prices. DCE iron ore futures Sep’21 contract closed today at RMB 1,178/t ($184) (up by RMB 3 d-o-d). However, on a weekly basis, the futures closing price has fallen by 1%.

“A few miners and traders are heard offering at $122-125/t, CFR China, but not sure if any transaction has been concluded. Last week a deal was heard at a 30% discount”, shared a trader source.

Rationale:

• Price indicators- Trades were not taken into consideration as prices could not be confirmed by buyer/seller, hence not considered for the calculation and given the weightage 0% under T1 trade.
• SteelMint has received nine (9) indicative prices and offers during the publishing window, and six were considered for price calculation as T2 inputs and given a weightage of 100%.

Market highlights:

Iron ore stocks at Chinese ports decline further- Iron ore inventory at major Chinese ports decreased by around 0.4 mn t to 126.25 mn t this week as compared with 128.65 mn t, a week before as per the data maintained by SteelHome.

Freight rates remaine stable- Freight rates for 50,000-55,000t export vessels from east coast India (Paradip) to China stable to $ 21-23/t as against last week.