SteelMint: India iron ore export index firm amid rise in global prices

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $43/t FOB east coast India, up by $3 w-o-w. The iron ore export market has witnessed some improvement in sentiment following the hike in global iron ore prices ahead of the Chinese New Year holidays.

Price indicators:

• No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received Five (05) indicative prices, bids and offers during the current publishing window of which three (03) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

The market remained silent as players awaited the return of Chinese players from holidays. However, workable price indications for Fe 57% Indian origin fines stand at $55-58/t, CFR China.

Tangshan-based mills were asked to curb production by local authorities so as to meet air quality standards ahead of Winter Olympics. This may keep the demand of low grade ore under presure.

Market highlights -

• The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $141.75/t CFR China on 26 Jan'22 against $138.1/t a week ago.
  
  
• DCE iron ore futures' May'22 contract closed at RMB 769/t ($121/t) on 27 Jan, up RMB 27/t ($4/t) against last week.
  
  
• Iron ore inventory at major Chinese ports decreased to 154.05 mn t on 27 Jan compared to 155.05 mn t last week, as per SteelHome data.