SteelMint: India iron ore export index rises marginally despite muted trades

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $49/t FOB east coast, up by $7/t w-o-w. The market has turned silent with no deals being heard, despite a slight price recovery.

"Price indications for Fe 57% fines are at around $65-68/t CFR China; however, no deal has been heard. Freight rates have increased by $2/t this week to $18-19/t on DMT basis for supramax vessels", an eastern India-based source informed.

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 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.
  
  

Market highlights -

• Spot prices increase by $7/t w-o-w - The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $138.05/t CFR China on 23 Feb against 18 Feb'22 at $130.65/t a week ago. Seaborne iron ore prices rose moderately although buyers remained on the sidelines.
  
  
• DCE iron ore futures inch up $3/t on week - DCE iron ore futures' May contract closed at RMB 703/t ($111/t) on 24 Feb, up RMB 18.5/t ($3/t) against last week.
  
  
• Port inventories in China increase - Iron ore inventory at major Chinese ports increased to 160.95 mnt on 17 Feb compared to 156.35 mnt last week, as per SteelHome data.
  
  
• Domestic low-grade iron ore offers range-bound - SteelMint's assessment for Fe 57% fines in Odisha stands at INR 2,200/t ex-mines (including royalty, DMF and NMET), up INR 100/t w-o-w.
  
  

Steel major JSW Steel had scheduled an auction for 853,200 t of iron ore fines (Fe 53-55%) yesterday from its Jajang mines in Odisha in which bids were received for 19,750 t offered at INR 1,650/t ex-mines including royalty, DMF and NMET. The auction was not for export purpose. Bid-offer disparity amidst bearish sentiments for low-grade iron ore may have resulted in the auction garnering subdued response.