India: SteelMint's low-grade iron ore export index rises post Chinese holidays

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $79/tonne (t) FOB east coast on 19 January, 2022, up $6/t w-o-w. Prices increased after Chinese market participants returned from Lunar New Year holidays. Trading was active in both North and East China. Most of the steel mills began purchasing cargo.

India's iron ore export shipments were recorded at 774,940 t in the fourth week of January in comparison with 334,290 t in the third week of January, as per vessel line-up data maintained with SteelMint.

While the reopening of Chinese borders seemed to have boosted market sentiment, some participants were more optimistic about iron ore demand in the upcoming days.

Price indicators

• One deal was heard this week, but it was not taken for price calculation under T1 trade and given 0% weightage in index calculation. Click here for the methodology.
  
  
• SteelMint received thirteen (13) indicative prices, bids, and offers in the current publishing window and eleven (11) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

As per market sources, some low-grade iron ore fines (Fe 57%) export deal got concluded in the last couple of days at around $91-93/t CFR. However, the deal was not confirmed till the time of publishing this article. Therefore, it is not considered for index price calculation.

Market highlights

• Global iron ore prices fall w-o-w: The benchmark Fe 62% fines index fell by $0.3/t w-o-w on 1 February, 2023 to $126.7/t CFR China as against $127/t a week ago. Iron ore spot prices in China fell w-o-w due to continued import losses and poor seaborne liquidity.
  
  
• DCE iron ore futures decrease: DCE iron ore futures' May 2023 contract closed at RMB 841.5/t ($125/t) on 2 February, down by RMB 23.5/t ($4/t) as against RMB 865/t ($129/t) on 20 January. Futures increased by RMB 25.5/t d-o-d ($4/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 133.45 mnt on 28 January compared to 134.3 mnt last week, as per SteelHome data.