India: SteelMint's low-grade iron ore fines export index stable on active trades

SteelMint's weekly India low-grade iron ore fines (Fe 57%) export index remained unchanged w-o-w at $65/t FOB east coast, as assessed on 27 July 2023. The market was optimistic this week as some trades were concluded from eastern and southern India and sellers getting inquiries from the China market.

A total of four deals of around 390,000 t were concluded from India in the last one week, as per data recorded by SteelMint. However as per market participants, only the paper market was performing well in terms of market activity, but demand in the physical market was sluggish due to lack of strong fundamentals.

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

India's iron ore export shipments were recorded at 449,276 t in the third week of July in comparison to 707,143 t in the second week of July, as per the vessel line-up data maintained with SteelMint.

Price indicators

• Three (3) deal was reported this week and were taken into calculation thus, given a 50% weightage. For methodology Click here.
  
  
• SteelMint received twelve (12) indicative prices, bids, and offers in the current publishing window and nine (9) were considered for price calculation as T2 inputs and given a 50% weightage.
  
  

Market highlights

• Global iron ore prices rise w-o-w: The benchmark Fe 62% fines index increased by $2.45/t to $116.45/t CFR China on 26 July as compared to the previous week. Prices were supported by an increased seaborne buying by Chinese steel mills on improved import margins. Steel mills' production margins remained quite decent to maintain their operations.
  
  
• DCE iron ore futures stable w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for September 2023 contract remained largely stable w-o-w at RMB 848.5/t ($118/t) on 27 July (at 3 pm). Prices decreased by RMB 18/t ($3/t) d-o-d.
  
  
• China port inventory edges down: Iron ore inventory at major Chinese ports decreased by 0.5 mnt to 122.8 mnt on 20 July compared to 123.3 mnt last week, according to SteelHome data.
  
  

Outlook

The inquiries for low-grade ore are likely to remain supported in the near-term, prices may see some correction given the volatility in global iron ore prices in China.