India: SteelMint's low-grade iron ore fines export index rises $2/t w-o-w

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index increased by $2/t w-o-w to $68/tonne (t) FOB east coast on 15 June, 2023. However, no deal has been concluded so far this week owing to volatility in the market.

As per sources, buyers are looking for more discounts for low-grade fines while the current discount is around 25-26%.

The recent recovery in the market has been ascribed to expectations of support measures from the Chinese government, but fundamental demand remains weak.

Sources stated that the prospect of the Chinese government's monetary support may have lifted market sentiments over the last few days. The majority of market players chose to sit on the sidelines, waiting to see signs of further recovery in market sentiments. This followed reports that raised concerns about future prices given the weak real state and infrastructure markets.

India's iron ore exports fall

India's iron ore export shipments were recorded at 453,216 t in the second week of June in comparison with 687,908 t in the first week of June, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was reported this week under T1 trade, and thus given 0% weightage. For methodology Click here.
  
  
• SteelMint received thirteen (11) indicative prices, bids, and offers in the current publishing window and nine (9) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Market Highlights:

• Global iron ore prices rise: The benchmark Fe62% fines index increased by $3.2/t to $114.3/t CFR China on 14 June compared to the previous week. Prices rose owing to increased liquidity for Australian medium-grade fines. Chinese steel mills kept running at high operating rates; however, some market players are worried due to rising fines prices as sinter input has became more expensive.
  
  
• Iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract closed at RMB 815.5/t ($114/t) on 15 June (at 3 pm), moving up by RMB 11/t ($2/t) d-o-d.
  
  
• China port inventory edges down: Iron ore inventory at major Chinese ports inched down by 0.55 mnt to 126.2 mnt on 8 June compared to 126.75 mnt last week, as per SteelHome data.