India: SteelMint's low-grade iron ore export index up $3/t w-o-w

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $73/tonne (t) FOB east coast on 19 January, 2022, up $3/t w-o-w. Prices increased on expectations of an increased demand post the Lunar New Year holidays.

India's iron ore export shipments were recorded at 660,600 t in the second week of January in comparison with 604,613 t in the first week of January, as per vessel line-up data maintained with SteelMint.

The trading activity at the portside was calm as most steel mills had finished their pre-Lunar New Year restocking activities.

Price indicators

• One deal was reported for around 55,000 t of low-grade fines at the end of last week by an eastern India-based player at around $72-73/t FOB east coast and was taken into price calculation under T1 trade hence given 50% weightage in the index calculation. Click here for the methodology.
  
  
• SteelMint received eight (08) indicative prices, bids, and offers in the current publishing window and all were considered for price calculation as T2 inputs and given 50% weightage.
  
  

Market highlights

• Global iron ore prices fall: The benchmark Fe 62% fines index fell by $1.3/t w-o-w on 17 January to $122.7/t CFR China as against $124/t a week ago. Iron ore spot prices in China decreased w-o-w due to slow buying for February arrival shipments as steel mills nearly finished restocking before the Lunar New Year holidays.
  
  
• DCE iron ore futures mostly stable w-o-w: DCE iron ore futures' May 2023 contract closed at RMB 852.5/t ($126/t) on 19 January, almost stable compared to last week. On a daily basis, futures increased by RMB 11/t ($2/t).
  
  
• Port inventories in China edge up: Iron ore inventory at major Chinese ports inched up to 135.2 mnt on 12 January compared to 134.1 mnt last week, as per SteelHome data.