India’s iron ore export market picked up during this week due to rising Chinese demand, SteelMint notes. SteelMint’s weekly low-grade Indian iron ore fines (Fe 57%) export index increased by $9/t to $96/t, FoB east coast India, as per latest reports.
The demand for low grade ore witnessed recovering during the week on expectations of less stringent production controls in China and thin seaborne supply for mainstream medium grade fines.Three export deals for Fe 57% fines were concluded by Odisha based miners this week for a quantity of 55,000t each for July shipments.
Chinese spot iron ore fines Fe 62% fines on 2nd Jun ’21 remained largely stable at $209.45/t, CFR China, (+$0.35/t) yesterday. However, on a weekly basis, prices have increased by around $15-20.Iron ore futures on the Dalian Commodity Exchange (DCE) moved up 2% d-o-d . DCE iron ore futures Sep’21 contract closed at RMB 1,194/t ($187) (+RMB 25.5)
Chinese spot iron ore fines Fe 62% fines on 2nd Jun ’21 remained largely stable at $209.45/t, CFR China, (+$0.35/t) yesterday.
Rationale:
- Price indicators- Three confirmed deals were reported this week and two were considered for the calculation and given the weightage 50% under T1 trade.
- SteelMint has received seven (7) indicative prices and offers during the publishing window, and six were considered for price calculation as T2 inputs and given a weightage of 50%.
Market highlights:
Iron ore stocks at Chinese ports down w-o-w- Iron ore inventory at major Chinese ports decreased by around 0.85 mn t to 127.65 mn t this week as compared with 128.5 mn t, a week before as per the data maintained by SteelHome.
Freight rates dropped down- Freight rates for 50,000-55,000t export vessels from east coast India (Paradip) to China dropped to $ 21-23/t as against $25/t last week.
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