SteelMint: India iron ore export index range-bound in absence of active trades

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $40/t FOB east coast India. The iron ore export market has witnessed some improvement in sentiment during the past week following the upside in iron ore import prices into China, however, the absence of active trade has kept market sentiments slow.

Rationale:

• Price indicators: No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade.
  
  
• SteelMint received Four (04) 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
  
  

Low-grade iron ore fines saw healthy demand as rising Chinese coke prices have hit steel margins, market sources said. The weakening of margins prompted traders to shift interest towards low-grade fines, with end-users likely to follow suit. This may result in improved inquiries in the coming weeks.

Market highlights -

• The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $138.1/t CFR China on 26 Jan'22 against $130.20/t a week ago. Iron ore prices rose supported by a firm demand outlook post the Winter Olympics in China.
  
  
• DCE iron ore futures' May'22 contract closed at RMB 769/t ($121/t) on 27 Jan, up RMB 27/t ($4/t) on the week.
  
  
• Portside liquidity was low but prices rose during the week, supported by rising futures prices on the Dalian Commodity Exchange.
  
  
• Iron ore inventory at major Chinese ports decreased to 155.05 mn t on 20 Jan compared to 156.7 mn t last week, as per SteelHome data.