India's iron ore export market muted in absence of trade

India's iron ore export market continues to remain quiet this week in the absence of trade amidst price unviability and weak demand from China. Market indications for Indian-origin low-grade fines (Fe 57%) were at $60-65/t CFR China. On the other hand, domestic low-grade fines (Fe 57%) prices were heard at around INR 1,000-1,200/t ex-mines, Odisha.

India's iron ore export shipments are likely to remain on the lower side in June as the market has turned silent after the government imposed a steep 50% export duty on iron ore of all grades from 30% previously only on grades above Fe 58%.

"There are no low-grade deals available as prices are no longer viable following the imposition of the export duty. Furthermore, the Chinese market is extremely weak, with no buyers showing interest," said a source.

Market highlights:

• Fe62% iron ore prices up $14/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines increased $13.8/t w-o-w to $123.6/t CFR China on 29 June as against $109.4/t a week ago. Seaborne iron ore prices rose on improved steel prices and
  expectations of more stimulus measures in China.
  
  
• DCE iron ore futures increase sharply w-o-w: DCE iron ore futures' September contract closed at RMB 791/t ($118/t) on 30 June, an increase by RMB 81.5/t ($12/t) compared to the previous week. On a daily basis, prices decreased by around RMB 12.5/t ($2/t).
  
  
• Port inventories in China inch down: Iron ore inventory at major Chinese ports inched down to 124.4 mnt on 23 June compared to 126.3 mnt last week, as per SteelHome data.
  
  

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