Indian low-grade iron ore fines export price increase sharply tracking global prices

SteelMint weekly low-grade (Fe 58/57%) FoB India iron ore fines price index increased sharply today (i.e 03rd Sept) by around $9/t w-o-w to $76/t FoB India. SteelMint's last week index stood at $67/t FoB India.

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.

Transactions (T1) - One deal has been concluded for Fe 57% grade from Odisha at around $76/t FoB India recorded by SteelMint for this week and 50% weightage given in the final price calculation.

Price indicators (T2) - SteelMint has received five indicative prices and offers during the publishing window. All the inputs were considered for price calculation as T2 inputs, with an average price of $75/t FoB India.

Market overview - Chinese demand for medium and low-grade iron ore cargoes has been increased as the steel mills are looking to stock iron ore fines amid stricter sintering controls measure in the upcoming months.

Chinese spot iron ore fines (Fe 62%) prices hit over seven-year high this week. Spot iron ore fines (Fe 62%) prices today increased to $130.8/t CFR against at $121.2/t CFR China a week ago. On a daily basis it was increased around $3/t yesterday. Although offers have increased sharply, trades are yet to pick up.

Recent OMCs iron ore fines auction for the low-grade fetched bids at INR 2,250/t over the base price of INR 1,050/t ex-mines, including royalty.

However, iron ore inventory at major Chinese ports increased sharply w-o-w at 117.65 mn t against 115.8 mn t a week ago as per Steelhome data.