India: Low-grade iron ore export prices rise marginally, no deals heard

SteelMint's weekly export index for low-grade Indian iron ore fines (Fe 57%) increased slightly by $2/t, w-o-w, to $37/t FOB east coast India. Export prices witnessed a slight uptick during the ongoing Golden Week holidays.

There was an inclination to wait for greater clarity on iron ore demand after the holidays but there were expectations of weaker iron ore demand amid anticipation of production cuts to continue in order to meet year-end steel output target.

"Indian iron ore export indications are at around $35-40/t FOB. However, the market is thin and no deals were heard during the holidays in China. Discounts are hovering around 35% against the Fe 62% futures price adjustments," shared a trader.

"Considering the hike in global prices, Fe 57% offers may have been at $45-50/t CFR China, but haven't heard any deals yet," informed an eastern-India based miner.

As per data maintained with SteelMint, total iron ore exports from Indian ports for the week (26 Sep-2 Oct) stood at zero compared to 57,500 t a week ago.

Rationale:

• Price indicators- No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received seven (7) indicative prices and offers during the current publishing window, and six (6) were considered for price calculation as T2 inputs, given weightage of 100%.
  
  

Market highlights:

• Spot iron ore fines prices stable, d-o-d: The spot price of benchmark iron ore Fe 62% fines remained stable at $117.8/t CFR China on 7 Oct. However, on a weekly basis, prices marked a slight decrease as against $118.25/t a week ago.
  
  
• Iron ore stocks increase at Chinese ports: Iron ore inventory at major Chinese ports increased to 133.5 mn t last week as against 130 mn t in the week before, as per data maintained by SteelHome.
  
  
  
• SAIL iron ore tailings auction receives tepid response: At SAIL's iron ore auction from the Dalli/Rajhara mines in Chhattisgarh, 8,000 t of tailings (Fe 51.11%) offered remained unsold, sources informed SteelMint.
  
  
• OMC iron ore e-auction: State-owned miner Odisha Mining Corporation (OMC) had scheduled 942,000 t of fines auction on 1 Oct. The auction received subdued response fetching bids for 232,000 t of fines at the base price. The low-grade iron ore (Fe58%) put to auction for about 100,000 t from OMC's Koira mines received bids for only 1,000 t at INR 4,000/t ex-mines.