SteelMint: India iron ore export index rises as China relaxes sintering restrictions

The easing of sintering restrictions in China resulted in a marginal improvement in buying enquiries for low-grade Indian iron ore fines. SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $51/t FOB east coast, rising by $6/t w-o-w.

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 nine (09) indicative prices, bids and offers in the current publishing window and all were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Due to the resurgence in COVID-19 cases, the market remained largely quiet, but production restarts in some parts of Tangshan boosted demand expectations, causing iron ore prices to rise.

Demand for low-grade ore remained supported on thin steel margins. "Mills' iron ore stocks were low and they will need to restock amid production restarts which resulted in increased enquiries for Indian origin cargoes," said a trader source.

Market highlights -

• Spot prices increase by $12/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $158.2/t CFR China on 30 Mar as against $146.45/t a week ago. Production restarts led Chinese buyers returning to the seaborne market, according to sources.
  
  
• DCE iron ore futures increase w-o-w: DCE iron ore futures' Sept contract closed at RMB 897/t ($141/t) on 31 March, up RMB 79/t ($12/t) compared with last week.
  
  
• Port inventories in China inch up: Iron ore inventory at major Chinese ports inched up to 156 mnt on 24 March compared to 155.8 mnt last week, as per SteelHome data.
  
  

• NDRC stresses on improving domestic iron ore supplies- The National Development and Reform Commission's (NDRC) Industry Department recently organized an exchange conference on "Accelerating the construction of domestic iron ore projects". Representatives from seven ministries, including the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the National Mine Safety Administration, and the State Administration of Taxation, as well as the China Iron and Steel Corporation were in attendance. The meeting centered on the country's current of mine development scenario, the "blocking points" and "stuck points" encountered, and the future actions.
  
  

Outlook: Prices have surely picked up this week on improved inquiries. However, it is reported that NDRC is holding a meeting again to warn about the high price of raw material, which may weigh down prices again, highlighted sources.