SteelMint: India iron ore fines export index edges up tracking global prices

SteelMint's index for India's low-grade iron ore fines (Fe 57%) exports has improved following the export duty withdrawal by the Indian government. The index stood at $62/t FOB east coast on 8 December, 2022, increasing by $2/t w-o-w.

With the execution of supportive policies for the Chinese property market, sentiments have improved, and iron ore prices are likely to remain supported. However, there continues to be a slight disparity between the bullish sentiments of some trading houses and the cautious behaviour of Chinese steel mills as market fundamentals so far remain largely unchanged.

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 nine (09) indicative prices, bids and offers in the current publishing window out of which eight (08) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Although the majority of market participants are optimistic about the long-term outlook for the iron ore market, current inherent demand remains weak, particularly from end-users.

Market highlights

• Global iron ore prices up on improving steel prices: The benchmark Fe 62% fines index rose by $6.3/t w-o-w on 7 December to $107.45/t CFR China as against $101.15/t a week ago. The spot prices of iron ore in China rose d-o-d on improved steel prices and the yuan's gain against the dollar, resulting in a reduction in import loss.
  
  
• DCE iron ore futures range-bound: DCE iron ore futures' May contract closed at RMB 778/t ($112/t) on 8 December, stable d-o-d.
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 137.5 mnt on 1 December compared to 138 mnt last week, as per SteelHome data.