SteelMint: India iron ore export index rises $5/t on healthy market sentiment

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports inched up $5/t to $41/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.

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.

One parcel of Fe 57% fines export was heard at around $57-58/t CFR China this week, informed an eastern India-based source.

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 increased w-o-w to $130.20/t CFR China on 19 Jan'22 against $127.95/t a week ago. Iron ore prices rose as buyers actively purchased March-arriving cargoes. DCE iron ore futures' May'22 contract closed at RMB 742/t ($117/t) on 20 Jan, up RMB 16/t ($3/t) on the week.

Iron ore inventory at major Chinese ports increased to 156.7 mn t on 13 Jan compared to 156 mn t last week, as per SteelHome data.

Total iron ore exports from Indian ports stood at 100,950t for week ended 15 Jan'22. 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 iron ore in CY'21 at 25.58 mn t. However, volumes shrank by 33% y-o-y compared to 38.11 mn t in CY'20.