India: SteelMint's low-grade iron ore fines export index rises by $3/t as global prices climb to five-month high

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index increased by $3/tonne (t) w-o-w to $70/t FOB east coast on 7 September 2023. As per sources, one deal of 55,000 t was reported from east-coast at $83/t CFR China in this publishing window but remained unconfirmed. Another deal of 170,000 t* (Fe54%) was heard from Karnataka but prices are yet to be discovered.

The benchmark Fe 62% fines index increased by $1.2/t w-o-w to around $119.5/t CFR China. Iron ore (Fe 62%) fines spot prices rose to around five months high due to decent demand and numerous trades in the market. As per reports, China's steel mills' demand of medium-grade fines supported prices of iron ore. However, there is lacklustre demand for high grade (Fe 65 fines) materials at port side.

Chinese mills are mostly demanding low and medium grade fines against the high-grade material for cost-effectiveness.

The buying interest from Chinese buyers increased amid positive signs in the last few days. As per traders, the offers and bids were also improved which is good sign for Indian iron ore exporters.

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.
  
  

Market highlights:

• DCE iron ore futures down: Iron ore futures on the Dalian Commodity Exchange (DCE) for January 2024 contract fell by RMB 12.5/t ($2/t) w-o-w to RMB 836.5/t ($114/t) on 7 September compared to RMB 849/t ($116/t) on 31 August.
  
  
• China iron ore port inventory edges up: Iron ore inventory at major Chinese ports edged up by 0.2 million tonnes (mnt) to 118.8 mnt on 31 August compared to 118.6 mnt last week, according to SteelHome data.
  
  

India's iron ore export shipments at Indian ports were recorded at 791,030 t in the last week of August compared to 274,300 t in the fourth week of August, as per vessel line-up data maintained with SteelMint.