SteelMint: India iron ore export index inches down, limited trades heard

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $45/t FOB east coast, falling by $2/t w-o-w. The market has remained largely quiet apart from a couple of deals heard concluded by Odisha-based parties. However, the price confirmation could not be received till the time of publishing this index assessment.

Portside liquidity remained low in and around North China, as the resurgence in COVID-19 cases impacted the transportation of iron ore from the ports to the steel mills.

Price indicators:

• No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received seven (07) indicative prices, bids and offers in the current publishing window out of which six (06) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Stock movement on trucks at Caofeidian Port was halted due to the ongoing testing for COVID-19 cases, according to a Chinese trader source. "Mills do not have enough inventories to sustain operations for long," said the trader source.

Market highlights -

• Spot prices increase by $11/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $146.45/t CFR China on 23 Mar as against $135.55/t a week ago. Seaborne iron ore prices rose despite logistical disruptions in China on expectation of demand recovery.
  
  
• DCE iron ore futures increase w-o-w: DCE iron ore futures' May contract closed at RMB 818/t ($128/t) on 23 March, up RMB 14/t ($2/t) compared with last week.
  
  
• Port inventories in China decrease: Iron ore inventory at major Chinese ports decreased to 155.8 mnt on 17 March compared to 157.2 mnt last week, as per SteelHome data.