SteelMint: India iron ore export market inactive on subdued Chinese buying

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $46/t FOB east coast, rising by $4/t w-o-w. The market has remained largely quiet amid subdued Chinese buying interest. The demand for low-grade ore continues to remain weak in China.

"Price indications for Fe 57% fines are at around $70/t CFR China. One deal from an eastern India based miner was learned to be under negotations" , highlighted a trader.

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 seven (07) 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 $13/t w-o-w - The spot price of benchmark iron ore (Fe 62%) fines increased w-o-w to $157.55/t CFR China on 9 Mar against 3 Mar'22 at $145/t a week ago. Seaborne iron ore prices surged on expectations of tightening supply due to the Russia-Ukraine conflict.
  
  
• DCE iron ore futures inch up $2/t on week - DCE iron ore futures' May contract closed at RMB 807.5/t ($128/t) on 10 Mar, up RMB 10/t ($2/t) against last week.
  
  
• Port inventories in China decrease - Iron ore inventory at major Chinese ports decreased to 158.9 mnt on 3 Mar compared to 160 mnt last week, as per SteelHome data.
  
  

• Domestic low-grade iron ore offers range-bound - SteelMint's assessment for Fe 57% fines in Odisha stable at INR 2,200/t ex-mines (including royalty, DMF and NMET).
  
  

Steel major JSW Steel has scheduled an auction for 205,400 t of crushed iron ore lumps (Fe 55-58%) on 15 Mar'22. The material is from the Jajang mines in Keonjhar district, Odisha. The floor price for the auction is set at INR 5,400/t ex-mines (including royalty, DMF and NMET). The auction was not for export purpose.