India: SteelMint's low-grade iron ore export index remains rangebound

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $77/tonne (t) FOB east coast on 16 February, 2023, up $1/t w-o-w. Export prices have inched up on rising futures and spot prices w-o-w along with improved steel demand and positive import margins on low-grade iron ore in the Chinese market.

As per latest reports, this week has witnessed some active portside trading.

However, Odisha-based sellers faced severe rake movement issues which made it difficult to conclude any export deal, although buyers are ready to conclude deals.

India's iron ore export shipments were recorded at 747,857 t in the second week of February in comparison with 501,920 t in the first week of February, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was heard this week so far. Last week a deal concluded at $87.5/t CFR was heard from Vishakapattanam but not confirmed by the buyer or seller. The price calculation under T1 trade was given 0% weightage in the index calculation Click here for the methodology.
  
  
• SteelMint received twelve (12) indicative prices, bids, and offers in the current publishing window and ten (10) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Market highlights

• Global iron ore prices up slightly w-o-w: The benchmark Fe 62% fines index inched up by $0.5/t w-o-w on 15 February to $123.6/t CFR China as against $122.9/t a week ago. Iron ore spot prices in China increased d-o-d after being backed up by growing demands. Most mainstream medium and high-grade fines still experienced import losses, while low-grade fines saw some import margins.
  
  
• DCE iron ore futures : DCE iron ore futures' May 2023 contract fell over the last two days but recovered to RMB 880/t ($127/t) on 16 February, up RMB 17/t ($2/t) as against RMB 863/t ($124/t) on 9 February.
  
  
• Port inventories in China rise: Iron ore inventory at major Chinese ports increased 1.85 mnt to 138.35 mnt on 2 February compared to 136.5 mnt last week, as per SteelHome data.