India: SteelMint's iron ore fines export index falls $5/t 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 6 April, 2023, decreasing by 5/t w-o-w.

No deal was heard this week as the market remained dull and the price gap between buyers and sellers widened. Global iron ore prices (Fe 62% Australian fines) and futures prices fell sharply this week which impacted low-grade iron ore export prices. Sources said that rainfall in multiple Chinese cities impacted the construction activities leading to overall low demand for iron ore.

According to sources, falling steel margins and subdued demand resulted in an increase in inventory which is another reason why iron ore prices declined in the global market.

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 Eight (8) indicative prices, bids, and offers in the current publishing window and seven (7) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Market highlights

• Global iron ore prices fall w-o-w: The benchmark Fe 62% fines index decreased by $4.65/t w-o-w on 5 April to $120.45/t CFR China as against $125.1/t a week ago. Iron ore spot prices in China fell w-o-w owing to weak buying amid the Qingming holidays. Sources said that iron ore prices declined as rains lashed multiple Chinese cities, which impacted steel demand. The fundamentals of iron ore production and demand remain unchanged. Decline in Chinese steel demand affected iron ore confidence in the market.
  
  
• DCE iron ore futures decline sharply: DCE iron ore futures' September 2023 contract decreased sharply to RMB 793/t ($115/t) on 6 April. The contract improved by RMB 4.5/t ($1/t) d-o-d compared to RMB 797.5/t ($116/t) yesterday.
  
  
• Port inventory stable: Iron ore inventory at major Chinese ports remained largely stable at 136.9 mnt on 30 March compared to 137 mnt last week, as per SteelHome data.