India: Iron ore export index stable, trade absent

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $67/tonne (t) FOB east coast on 20 April, 2023.

The recent increase in iron ore fines prices made market players cautious because they lacked confidence in the sustainability of the gains.

According to market sources, higher steel output in the second quarter, along with low iron ore stockpiles and a revival in the Chinese housing market, may boost the bullishness.

India's iron ore export shipments stable

India's iron ore export shipments were recorded at 793,080 t in the second week of April in comparison with 774,745 t in the first week of April, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was reported so far this week and hence not taken into account for price calculation under T1 trade and given 0% weightage.
  
  
• SteelMint received thirteen (13) indicative prices, bids, and offers in the current publishing window and eleven (11) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Market highlights

• Global iron ore prices stable w-o-w: The benchmark Fe 62% fines index remained stable at $120.75/t CFR China on 19 April compared to the previous week. Prices were stable amid positive macroeconomic data and news of rising steel production. Import margin saw an increase this week, and seaborne buying was consistent.
  
  
• DCE iron ore futures down w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract closed at RMB 761.5/t on 20 April (at 3 pm), decreasing by RMB 37/t ($5/t) against RMB 798.5/t on 12 April. Prices inched down by RMB 16/t d-o-d against RMB 777.5/t a day before.
  
  
• Port inventory in China drops: Iron ore inventory at major Chinese ports decreased by 1.2 mnt to 133.3 mnt on 6 April compared to 134.5 mnt last week, as per SteelHome data.
  
  

Outlook: Bids in the Indian iron ore export market fell today after a sharp drop in futures contract today. Sources stated that the market situation will change once increased prices sustain. Prices are expected to go up around end-April as buying from China may start by that time.