India: Iron ore export market remains subdued, index stable w-o-w

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index stood at $67/tonne (t) FOB east coast on 13 April, 2023, stable w-o-w.

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

Sources stated that the market situation will change once increased prices sustain. Prices are expected to go up around the end of April as buying from China may start by that time.

However, Chandrapur-based miner Lloyds Metals and Energy has concluded two export deals for 50,000 t each of low-grade iron ore fines (Fe57%) recently. The material is to be shipped from Vizag Port. However, deal prices were not disclosed by the company.

According to market sources, China's steel pricing and consumption were under pressure, and the cost of essential raw materials like coking coal was declining.

India's iron ore export shipments were recorded at 717,595 t in the first week of April 2023 in comparison with 1.04 mnt in the last week of March 2023, 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 edge up w-o-w: The benchmark Fe 62% fines index inched up by $0.30/t w-o-w on 12 April to $120.75/t CFR China as against $120.45/t a week ago. Market sources ignored worries about heavy rainfall in Western Australia, saying that they do not foresee any significant impact on cargo loading schedules. However, Chinese port activity was tepid due to sluggish steel demand following rainfall in numerous Chinese locations.
  
  
• Port inventory drops: Iron ore inventory at major Chinese ports decreased by 2.4 mnt to 134.5 mnt on 6 April compared to 136.9 mnt last week, as per SteelHome data.