SteelMint: India iron ore fines export index edges down

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $65/tonne (t) FOB east coast on 22 December, 2022, inching down by $1/t w-o-w. Active buying interest was limited as participants remained on the sidelines due to increasing Covid-19 cases in China.

Export deals from India have turned active post-removal of the duty on low grade ore. India's iron ore export shipments were recorded at 0.36 mnt in the second week of December, 2022 in comparison to 0.12 mnt in the previous week, according to the vessel line-up data maintained with SteelMint.

Price indicators

• No deal was reported in the current publishing window and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received thirteen (13) indicative prices, bids and offers in the current publishing window and eleven (11) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Chinese steel mills, on the other hand, continue to operate at lesser margins. Many sources have cited improving demand for low-grade fines as mills try to keep their production costs low.

Market highlights

• Global iron ore prices improve on tight Brazilian supply: The benchmark Fe 62% fines index rose by $4.5/t w-o-w on 14 December to $114.25/t CFR China as against $109.75/t a week ago. According to sources, Brazil's seasonal rainy season starts in December, and traders are actively trying to secure Brazilian cargoes ahead of seasonal supply disruptions.
  
  
• DCE iron ore futures decrease w-o-w: DCE iron ore futures' May contract closed at RMB 817.5/t ($117/t) on 22 December, down RMB 12.5/t ($2/t) compared to last week. On a daily basis, it decreased by RMB 11.5/t ($2/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 136.15 mnt on 15 December compared to 136.35 mnt last week, as per SteelHome data.