SteelMint: India iron ore export index corrects marginally as trade remains muted

SteelMint's weekly index for low-grade iron ore fines (Fe 57%) exports decreased by $1/t to $34/t FOB east coast India. India's iron ore export market continues to remain inactive.

Rationale:

• Price indicators: No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received five (5) indicative prices, bids and offers during the current publishing window, and four (4) were considered for price calculation as T2 inputs, given a weightage of 100%.
  
  

The spot price of benchmark iron ore Fe 62% fines decreased w-o-w on declining procurement and stood at $118.05/t CFR China on 29 Dec'21 as against $122.60/t a week ago. DCE iron ore futures' May'22 contract closed at RMB 669/t ($105/t) on 30 Dec, down RMB 24/t ($4/t) on week.

Iron ore inventory at major Chinese ports increased to 157.5 mn t on 16 Dec compared to 156 mn t a week before, the highest since mid-Jul'20, as per SteelMint's compilation of data supplied by SteelHome. No further stock movements happened so far this week.

SteelMint data reveals that total iron ore exports from Indian ports for the week (12-18 Dec'21) continued to remain nil for the fourth consecutive week.

There are very limited offers at present from India as buying interest has slowed down before the New Year holidays, traders highlighted.