SteelMint: India iron ore export index rises marginally; trades yet to pick up

SteelMint's weekly index for India low-grade iron ore fines (Fe 57%) exports inched up $1/t to $35/t FOB east coast India. India's iron ore export market continues to remain inactive on bid-offer disparities.

A few offers for Fe 57% fines were heard at around $65-70/t CFR China, while workable price levels are around $52-55/t CFR, a source informed.

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 seven (7) were considered for price calculation as T2 inputs and given a weightage of 100%.
  
  

There are no bids for low-grade iron ore from China and disparity exists between expectations of buyers and sellers, trader sources highlighted.

The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $128.2/t CFR China on 6 Jan'22 against $118.05/t a week ago. DCE iron ore futures' May'22 contract closed at RMB 717/t ($112/t) on 30 Dec, up RMB 48/t ($8/t) on week.

Iron ore inventory at major Chinese ports decreased to 156.2 mn t on 30 Dec compared to 157.5 mn t a week before, as per SteelMint's compilation of data supplied by SteelHome.

Total iron ore exports from Indian ports for the week continued to remain nil for the fourth consecutive week.

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 pellets in CY'21 at 25.58 mn t. However, volumes shrank by 33% y-o-y as against 38.11 mn t in CY'20.