India: SteelMint's iron ore fines export index falls to over two-month low

SteelMint's weekly index of India's low-grade iron ore fines (Fe 57%) exports stood at $71/tonne (t) FOB east coast on 23 March, 2023, falling by $11/t w-o-w to a two-month low. The low-grade iron ore export prices decreased sharply due to global financial issues and a large drop in global iron ore (Australian origin, Fe 62%) this week.

Market participants said that the banking crisis has weighed heavily on the prices of all commodities across the globe since the beginning of this week.

However, one low-grade fines (Fe 57%) deal of Panamax size (75,000 t) was heard at $92/t CFR China at the beginning of this week, sources informed SteelMint. However, confirmation could not be received from either of the parties (buyer or seller) at the time of publishing this article.

According to sources, the iron ore export market from India is silent. At the same time, availability of iron ore is also limited as Odisha miners have almost exhausted their EC limits.

India's iron ore export shipments were recorded at 734,571 t in the third week of March, in comparison with 657,850 t in the second week, as per the vessel line-up data maintained with SteelMint.

Price indicators

• One deal was reported so far this week, but was not taken into account for price calculation under T1 trade and given 0% weightage. Click here for the methodology.
  
  
• SteelMint received twelve (12) indicative prices, bids, and offers in the current publishing window and eleven (11) were considered for price calculation as T2 inputs and given a 100% weightage.
  
  

Market highlights

• Global iron ore prices fall sharply w-o-w: The benchmark Fe 62% fines index declined by $11.7/t w-o-w on 22 March, 2023 to $121.4/t CFR China as against $133.1/t a week ago. The price drop was large because of the global economic environment, which affected market confidence. Sources stated that Chinese steel mills' margins are still squeezed as the price recovery is slow.
  
  
• DCE iron ore futures fall: DCE iron ore futures' May 2023 contract sharply decreased by RMB 48/t ($7/t) to RMB 854/t ($125/t) on 23 March as against RMB 902/t ($132/t) on 16 March. The contract dropped by RMB 11.5/t ($7/t) d-o-d compared to RMB 865.5/t ($127/t) yesterday.
  
  
• Port inventories in China fall: Iron ore inventory at major Chinese ports decreased by 1 mnt to 137.6 mnt on 16 March compared to 138.6 mnt last week, as per SteelHome's data.