India: SteelMint's low-grade iron ore fines export index rises by $5/t w-o-w tracking global price recovery

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index increased by $5/t w-o-w to $66/tonne (t) FOB east coast on 8 June, 2023. The index was propped up by rising global iron ore prices.

Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract closed at RMB 791/t ($111/t) on 8 June (at 3 pm), moving up by RMB 48/t ($6/t) w-o-w. Futures increased by RMB 21/t ($3/t) d-o-d compared to RMB 770/t ($108/t) on 7 June.

An export deal of 55,000 t of low-grade iron ore fines (Fe56-57%) was heard concluded by an Indian trader at $74/t CFR China this week. In addition, a couple of deals were heard concluded at the similar price levels, following which offers increased to $77-78/t CFR China, sources told SteelMint.

Sentiment in the seaborne market turned bullish on an expected economic support from the Chinese government, particularly to the property sector. This will directly impact Indian low-grade fines export prices.

Most market participants were on the sidelines, waiting to see if these improved sentiments would last longer.

India's iron ore export shipments inch down

India's iron ore export shipments were recorded at 687,908 t in the first week of June in comparison with 936,448 t in the last week of May, as per vessel line-up data maintained with SteelMint.

Price indicators

• A deal was reported this week and taken for price calculation under T1 trade, giving 50% weightage, for methodology Click here
  
  
• SteelMint received thirteen (13) indicative prices, bids, and offers in the current publishing window and eleven (11) were considered for price calculation as T2 inputs and given 50% weightage.
  
  

Market highlights-

• Global iron ore prices rise: The benchmark Fe62% fines index increased by $7.9/t to $111.1/t CFR China on 7 June compared to the previous week. Spot prices increased amid firm buying activities in the seaborne market.
  
  
• China port inventory edges down: Iron ore inventory at major Chinese ports inched down by 0.15 mnt to 126.75 mnt on 1 June compared to 126.9 mnt last week, as per SteelHome data.
  
  

Outlook

SteelMint understands that the improvement in iron ore market sentiments could be temporary. It is expected that in the upcoming week, prices may remain volatile considering sluggish steel demand in China.