India: SteelMint's low-grade iron ore fines export index rises by $3 amid positive market sentiments

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index increased by $3/tonne (t) w-o-w to $67/t FOB east coast on 31 August 2023. No deal was reported in this publishing window at current prevailing offers.

Meanwhile, the market has slightly become more optimistic due to the absence of the expected output reduction for Chinese steel mills. Spot prices increased on decent import margins supporting buying activities in the seaborne market.

Price indicators

• No deal was reported this week and not taken into calculation thus, given nil weightage. For methodology Click here.
  
  
• SteelMint received eleven (11) indicative prices in the current publishing window and nine (9) were considered for price calculation as T2 inputs and given a 100% weightage.
  
  

Why export prices have risen w-o-w?

• Global iron ore prices stay supported: The benchmark Fe 62% fines index remained largely stable w-o-w at around $116/t CFR China. Prices remained supported as the market witnessed firm buying activities. Healthy import margins for mainstream medium-grade fines supported buying activities in the seaborne market.
  
  
• DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for January 2024 contract rose by RMB 38/t ($5/t) w-o-w to RMB 849/t ($117/t) on 31 August compared to RMB 811/t ($112/t) on 24 August.
  
  
• China iron ore port inventory edge up: Iron ore inventory at major Chinese ports edged up by 1.7 million tonnes (mnt) to 118.6 mnt on 31 August compared to 116.5 mnt last week, according to SteelHome data.
  
  

India's iron ore export shipments at Indian ports were recorded at 274,300 t in the fourth week of August compared to 376,473 t in the third week of August, as per vessel line-up data maintained with SteelMint.

Outlook

As per the sources' views, the current momentum in the macroeconomy will likely lead to an increase in seaborne iron ore prices. Given current market conditions and the likelihood that deals will be completed soon, many people are optimistic about the resolution between the bid and offer prices.