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SteelMint: India iron ore fines export index range-bound in absence of active trade

India’s iron ore export prices remained supported this week. However, deals have remained subdued as Chinese mills are awaiting clarity on NDRC checks amid incr...

Fines/Lumps
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21 Apr 2022, 20:11 IST
SteelMint: India iron ore fines export index range-bound in absence of active trade

India's iron ore export prices remained supported this week. However, deals have remained subdued as Chinese mills are awaiting clarity on NDRC checks amid increase in Covid cases. SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $61/t FOB east coast, inching up by $1/t w-o-w.

Price indicators:

  • No deal was reported so far this week, hence, not taken into price calculation under T1 trade and given no weightage in index calculation. Click here for methodology.

  • SteelMint received ten (10) indicative prices, bids and offers in the current publishing window and nine (09) were considered for price calculation as T2 inputs and given 100%* weightage.

Indian miners & traders are indicating $82-85/t CFR China levels for Fe 57% fines, but haven't heard any firm deals this week. The market has slowed down after witnessing some momentum last week.

China's National Development and Reform Commission (NDRC), on 19 April, 2022, announced the country will continue with the crude steel reduction policy. The efforts of 2022 will only help to sustain the 2021 goals of 30 mnt of reduction. Also, increase in Covid cases in China have resulted in increased vessel waiting period at ports. All these factors have resulted in Chinese players adopting a 'wait & watch' approach before placing fresh orders, highlighted sources.

Market highlights

  • Fe 62% spot iron ore prices down $2/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines decreased w-o-w to $149.8/t CFR China on 19 April, 2022 as against $151.4/t a week ago. Market participants adopted a wait-and-watch stance amid the unclear demand-supply market fundamentals.

  • DCE iron ore futures inch up: DCE iron ore futures' September contract closed at RMB 904/t ($140/t) on 21 April, 2022, up RMB 6/t ($1/t) compared with the previous day. On a weekly basis, prices inched up by around RMB 2.5/t ($0.39/t).

  • Port inventories in China inch down: Iron ore inventory at major Chinese ports inched down to 152.9 mnt on 14 April, 2022 compared to 154.9 mnt last week, as per SteelHome data.

 

21 Apr 2022, 20:11 IST

 

 

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