SteelMint: India iron ore export index edges up, deals likely to improve

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports inched up $1/t to $36/t FOB east coast India. India's iron ore export market has witnessed some improvement in sentiments in the past week following the upside in iron ore import prices in China.

"A few tenders were floated in the market this week from Indian exporters. However, we didn't hear any deal yet. A few Indian suppliers were heard targeting $60-63/t CFR China for Fe 57% fines, but workable price levels seem to be currently at around $55-58/t CFR", highlighted a source.

A few exporters were heard booking decent volumes of low grade (Fe 57%) fines from eastern India-based traders and export deals can be expected in the coming weeks. In a recent deal, 200,000 t fines (Fe 57%) was booked at INR 1,300/t ex-mines, inclusive of royalty, DMF and NMET, last week.

Rationale:

• Price indicators: No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received eight (8) indicative prices, bids and offers during the current publishing window of which six (6) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

The spot price of benchmark iron ore (Fe 62%) fines decreased w-o-w to $127.95/t CFR China on 13 Jan'22 after rising to $132/t CFR a day before. DCE iron ore futures' May'22 contract closed at RMB 726/t ($114.13/t) on 13 Jan'22, up RMB 9/t ($1.41/t) on week.

Iron ore inventory at major Chinese ports decreased to 156 mn t on 6 Jan compared to 156.2 mn t a week before, as per SteelMint's compilation of data supplied by SteelHome.

Total iron ore exports from Indian ports continued to remain nil for the fourth consecutive week. India's iron ore export shipments witnessed a fall of 34%, y-o-y, in CY'21 to 26.82 mn t from 40.7 mn t in CY'20, according to SteelMint's vessel line-up data. China continued to remain the largest importer of Indian pellets in CY'21 at 25.58 mn t. However, volumes shrank by 33% y-o-y as against 38.11 mn t in CY'20.