India: BigMint's iron ore fines export index stable w-o-w amid CNY holidays

• Absence of inquiry in the seaborne market
  
  
• No physical transactions due to CNY holidays
  
  
• Buyers to return on 19 Feb
  
  

BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $83/t FOB east coast on 15 February 2024. No deals were recorded from India for low-grade fines export amid the absence of buyers.

The seaborne market for Indian iron ore fines remained poor amid the Chinese New Year (CNY) holidays due to which buyers and steelmakers remained away from the market. There was no demand witnessed in the seaborne market.

Indian miners kept offers firm and did not sell the material at lower bids as it was not feasible for them while domestic iron ore prices were on the higher side, especially for lower-grade fines.

A seller said: "Most of the buyers from China remained away from the market. However, we received a few bids from Singapore-based trading sources but they were very low against the offers. We are holding the offers and expect that the market will open northward after the Lunar holidays. Other region buyers also remained quiet."

On the other hand, a few Chinese steel sources reported that portside offers in China for Indian iron ore fines (Fe57%) closed due to the Lunar holidays. Buying activity was anticipated to be subdued until 19 February, when the majority of participants were expected to return to the market. According to the source, there was a possibility of a resurgence of interest in seaborne cargo in China after the holidays, although quick delivery was not promised.

An Odisha-based seller commented: "Most of the Indian sellers already sold their material before the Lunar holidays at decent offers as demand was also on the higher side from China. Before the two weeks of holidays, we observed good demand for Indian low-grade fines material as Chinese mills avoided booking premium and high-grade material. So I think most of the sellers already sold the material. However, those who have stock left may clear the inventory before the financial year comes to an end at decent prices."

In the China market, since most players have entered the holidays, there were essentially no offers or deals. Major mills in China put their blast furnaces on maintenance shutdown as they were facing margin issues for finished steel amid higher raw material costs before the holidays.

Other highlights:

• Global iron ore prices stable this week: The benchmark Fe 62% fines index remained largely stable this week at $129.5/t CFR China on 14 February. There was not much spot trading going on, and no offers were made. The week saw stability in the tradable values for mainstream products as well.
  
  
• India iron ore shipment falls w-o-w: India's iron ore export shipments were recorded at 908,464 t in the second week of February compared to 1,133,364 t in the first week of February, as per vessel line-up data maintained with BigMint.
  
  

Price indicators:

• No deal was reported this week for fines Fe 57% from the east coast and not taken into calculation. Thus, given 0% weightage. For detailed methodology Click here.
  
  
• BigMint received twelve (12) indicative prices in the current publishing window and eight (8) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Outlook

The fines export market is expected to remain supportive from the current level as buyers will return next week from the CNY holidays. However, post-holiday market dynamics expected to improve with new bookings.