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Indian low-grade fines export prices range-bound, limited trades reported

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Fines/Lumps

BigMint Bureau

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22 Oct 2020, 19:04 IST

Indian low-grade fines export prices range-bound, limited trades reported

SteelMint's weekly low-grade iron ore fines (Fe 58/57%) FoB India index remained largely stable this week. Index stands at $77/t FoB against last index of $78/t FoB east coast India. However, with limited deals being reported and increasing Chinese port stock inventories, market sentiments continued to remain bearish.

Rationale: The index has been calculated using an average of T1 and T2 price inputs. Transactions confirmed by either a buyer/seller are designated as T1 input while bids, offers, and indicative prices are designated as T2 inputs. Both T1 and T2 categories of inputs carry 50% weightage each in price calculation for FOB price assessment.

Price indicators - Trade sources reported couple of export deals to have concluded for Fe 57% fines by eastern India based traders at $87t CFR China (equivalent to $76/t FoB India). Deals were concluded towards the beginning of this week for Nov'20 shipments. These were taken into consideration for price calculation as T1 inputs.

SteelMint has received two indicative prices and offers during the publishing window. All inputs were considered for price calculation as T2 inputs, with an average price of $78/t FoB India.

Market highlights -

Chinese spot iron ore fines (Fe 62%) remained majorly stable on a weekly basis and stood at $120.4/t CFR China yesterday. However, on daily basis the prices have increased today marginally against the $119.5/t CFR China assessed yesterday amid sluggish demand and decline in futures.
China's rising port inventories and softening physical demand for steel products weighed on sentiments. Iron ore inventory at major Chinese ports increased in this week sharply by 3.3 mn t to 127.8 mn t against 124.5 mn t a week ago.
Iron ore futures Jan'21 futures declined by RMB 3.5/t today to close at RMB 793.5/t while Singapore Nov'20 iron ore futures contract closed at $116.78/t.
India's domestic iron ore fines (Fe 57%) price in Odisha is heard to be around INR 1,800-1,850/t ex-mines (incld. Royalty).