India: SteelMint's low-grade iron ore export index falls on dull China demand

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $76/tonne (t) FOB east coast on 9 February, 2023, down $3/t w-o-w. Export offers fell with the drop in futures and spot prices owing to sluggish demand in the Chinese market after the Lunar New Year holidays.

As per latest reports, portside inventory and seaborne iron ore procurement cost have narrowed down on declining prices over the last few days. Most buyers are on wait-and-watch mode looking for more clarity on the Chinese market.

India's iron ore export shipments were recorded at 501,920 t in the first week of February in comparison with 774,940 t in the fourth week of January, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was heard this week so far. The price calculation under T1 trade was given 0% weightage in index calculation. Click here for the methodology.
  
  
• SteelMint received eleven (11) indicative prices, bids, and offers in the current publishing window and eight (08) 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 fell by $3.8/t w-o-w on 8 February to $122.9/t CFR China as against $126.7/t a week ago. Iron ore spot prices in China fell d-o-d due to China's downstream steel demand being softer than expected post Lunar New Year holidays.
  
  
• DCE iron ore futures : DCE iron ore futures' May 2023 contract had fallen over the last two days but recovered to RMB 863/t ($127/t) on 9 February, up RMB 23.5/t ($3/t) as against RMB 841.5/t ($124/t) on 2 Febuary.
  
  
• Port inventories in China rise: Iron ore inventory at major Chinese ports rose 3.05 mnt to 136.5 mnt on 2 February compared to 133.45 mnt last week, as per SteelHome data.