SteelMint: India iron ore export index climbs to six-month high post CNY holidays

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $60/t FOB east coast, up by $17/t w-o-w, the highest in six months. Iron ore exports have witnessed growing momentum after China re-entered the market post CNY holidays.

SteelMint heard one-two parcels of export deals to have been concluded by an eastern India-based trader at $72-77/t CFR China this week. However, the sell-side confirmation could not be received. A few offers were heard at around $79-80/t CFR China.

"Prices have climbed post CNY holidays following the upside in global prices. Price indications from Chinese buyers were heard at around $77/t CFR", a China based source informed.

"Trade discounts for low-grade ore have come down to 46-47% against 52-53% earlier", an eastern India-based source said.

Price indicators:

• No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received eight (08) indicative prices, bids and offers during the current publishing window of which seven (07) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Market highlights -

• The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $146.75/t CFR China on 9 Feb against $141.75/t a week ago. Seaborne iron ore prices increased as the bullish demand outlook continued.
  
  
• DCE iron ore futures' May contract closed at RMB 822/t ($129/t) on 10 Feb, up RMB 53/t ($8/t) against last week.
  
  
• Iron ore inventory at major Chinese ports decreased to 155.4 mn t on 8 Feb compared to 154.05 mn t last week, as per SteelHome data.