India: SteelMint's iron ore fines export index rises marginally by $1/t w-o-w in recent deal

SteelMint's weekly index of India's low-grade iron ore fines (Fe 57%) exports stood at $82/tonne (t) FOB east coast on 16 March, 2023, up slightly by $1/t w-o-w.

Two deals were concluded in the last one week. Out of that one low-grade fines (Fe 57%) deal was concluded yesterday at $103/t CFR China, sources informed SteelMint. However, confirmation could not be received from either of the parties (buyer or seller) at the time of publishing this article.

Another deal was concluded for 55,000 t of Fe 57% fines by a trader from Odisha at $96/t CFR and was taken into price calculation.

As per sources, Chinese mills are showing more interest in low-grade fines rather than high-grade material as the margins are still lower than the desirable levels.

India's iron ore export shipments were recorded at 657,850 t in the second week of March in comparison with 696,978 t in the first week, as per vessel line-up data maintained with SteelMint.

Price indicators

• Two deals were reported so far this week, out of which one was taken for price calculation under T1 trade and given a 50% weightage. Click here for the methodology.
  
  
• SteelMint received sixteen (16) indicative prices, bids, and offers in the current publishing window and nine (9) were considered for price calculation as T2 inputs and given a 50% weightage.
  
  

Market highlights

• Global iron ore prices up w-o-w: The benchmark Fe 62% fines index increased by $4.1/t w-o-w on 16 March, 2023 to $133.1/t CFR China as against $129/t a week ago. Iron ore spot prices in China increased w-o-w as trade activity improved with ease in liquidity. Market participants saw steel mills' margins rising on supportive prices and downstream demand. According to sources, some mills might start to consider using slightly more expensive items with an improvement in margins.
  
  
• DCE iron ore futures fall: DCE iron ore futures' May 2023 contract decreased by RMB 14.5/t ($2/t) to RMB 902/t ($131/t) on 16 March as against RMB 916.5/t ($133/t) on 9 March. The contract dropped by RMB 24.5/t d-o-d compared to RMB 926.5/t ($134/t) yesterday.
  
  
• Port inventories in China fall: Iron ore inventory at major Chinese ports decreased by 2.8 mnt to 138.6 mnt on 9 March compared to 141.4 mnt last week, as per SteelHome's data.