India: SteelMint's low-grade iron ore fines export index down $2/t w-o-w in absence of active trade

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index came down by $2/tonne (t) w-o-w to $63/t FOB east coast, as assessed on 6 July 2023. The market was sluggish due to weaker demand from China.

SteelMint heard a deal from an Odisha-based miner for 55,000 t of low-grade fines (Fe 57%) recently at $71-73/t CFR but could not confirm at the time of publishing this article, hence, not taken under the index price calculation.

As per sources, buying activity in the market is quite low. Hence, to entice buying interest, suppliers are giving discounts. However, Chinese mills are prefering blending medium-grade and low-grade fines as per needs and are reluctant to built inventories despite improved margins as they are mostly focused on cost-efficient materials.

India's iron ore export shipments rise w-o-w

India's iron ore export shipments were recorded at 557,056 t in the last week of June in comparison with 360,399 t in the fourth week of June, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was reported this week thus, given 0% weightage. For methodology Click here.
  
  
• SteelMint received fifteen (15) 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 edge down: The benchmark Fe 62% fines index inched down by $1.95/t to $111.55/t CFR China on 5 July as compared to the previous week. However, participants were surprised by the uptick in business activity at the beginning of this week because Tangshan city had recently issued massive restrictions on sintering operations for the entire July month.
  
  
• DCE iron ore futures range-bound w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract remained range bound w-o-w at RMB 829.5/t ($115/t) on 6 July (at 3 pm). Prices remained unchanged d-o-d.
  
  
• China port inventory edges down: Iron ore inventory at major Chinese ports inched down by 0.65 mnt to 125.7 mnt on 29 June compared to 126.35 mnt last week, according to SteelHome data.
  
  

Outlook

India's low-grade fines export trade activities are expected to remain low as the monsoon has started hitting every part of the country. Also, export demand may remain weak on falling bids from China.