India: Low-grade iron ore fines export prices up on recent deals

Prices of Indian low-grade iron ore fines gained in China this week as demand remained robust.

SteelMint's weekly assessment for Fe 58/57% fines export increased by $1-2/t to $74-76/t against $73-75/t CFR China last week.

Deals for low-grade fines (Fe 57%) were concluded during the week at around $75-76/t CFR China, for which shipments were scheduled at the end of Aug and early Sept'20.

Two major global trading companies reported transactions of a total of four parcels, each of 55,000 t, Fe 57% fines at $75-77/t CFR China.

Higher prices of low-grade fines tracked gains in the 62pc fines index, which increased by 1.73% this week to $111.45/t on Thursday. Tight stocks of mainstream medium grade fines in major Chinese ports and expectation of continued strong demand could support prices in the near-term.

Supply of iron ore fines has tightened in India as monsoon rains disrupt mining and logistics while a majority of auctioned mines in Odisha remain non-operational. Low-grade Fe 57% fines offered increased to INR 1,300-1,400/t (Ex-mines, including Royalty, DMF & NMET) in the domestic market.