India: Low-grade iron ore fines export negotiations underway as suppliers turn active

India's iron ore export market has gained momentum recently with some booking discussions heard underway. A couple of exporters were heard to be in discussions for deals, although trades are yet to be concluded, sources shared.

Price indications for Indian origin Fe 57% fines are heard at around $80-90/t CFR China. With the lowering of discounts for low-grade ore, prices have found some support.

On the other hand, SteelMint's assessment for Fe 57% fines in the Odisha market was INR 1,250/t ex-mines. In Electrosteel's (ESL) auction for 70,000 t of iron ore fines and lump (both Fe 58-60%) from its Nadidih BICO and Feegrade mines in Odisha on 14 June, the entire quantity of 50,000 t of fines and 20,000 t of lump was booked at the base prices of INR 1,550/t and INR 2,800/t ex-mines, respectively (including royalty, DMF & NMET).

Market highlights:

• Fe 62% iron ore prices drop $13/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines decreased $13/t w-o-w to $130.85/t CFR China on 15 June as against $143.85/t a week ago. Seaborne iron ore buying interest continued to remain poor amid a bearish demand outlook.
  
  
• DCE iron ore futures decrease sharply w-o-w: DCE iron ore futures' September contract closed at RMB 867.5/t ($129/t) on 16 June, falling by RMB 57/t ($8/t) compared with the previous week. On a daily basis, prices increased by around RMB 0.5/t.
  
  
• Port inventories in China inch down: Iron ore inventory at major Chinese ports inched down to 128.3 mnt on 9 June compared to 132 mnt last week, as per SteelHome data.
  
  

To know more about, Indian iron ore market outlook
Iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.