SteelMint: India iron ore fines export index rises on improved enquiries from China

India's iron ore export market sentiments continued to remain supported on enquiries from China amid thinning margins in finished steel. SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $60/t FOB east coast, increasing by $6/t w-o-w.

Price indicators:

• One confirmed deal for 55,000t Fe 57% fines was concluded at $85/t, CFR China by an Odisha-based miner in the current publishing window and hence given 50% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received eight (8) indicative prices, bids and offers in the current publishing window and all were considered for price calculation as T2 inputs and given 50% weightage.
  
  

Notably, Tangshan lifted steelmaking restrictions imposed to fight the COVID-19 surge earlier this week which improved raw material deliveries to the steel mills. Also, with margins of steel mills getting squeezed, enquiries for low-grade iron ore have gained momentum in China. Additionally, bulk freight rates have eased out further by $2/dmt against last week. All these factors have lifted Indian iron ore export prices.

Market highlights -

• Fe 62% spot iron ore prices down $9/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines decreased w-o-w to $151.4/t CFR China on 14 April, 2022 as against $160.2/t a week ago. Seaborne iron ore prices fell following a news release that Chinese state planning bodies are holding onto their plans to keep rising bulk commodity prices under control.
  
  
• DCE iron ore futures volatile: DCE iron ore futures' September contract closed at RMB 901.5/t ($141/t) on 14 April, 2022, up RMB 17.5/t ($3/t) compared with the previous day. However, on a weekly basis, prices inched up by around RMB 1.5/t ($0.24/t).
  
  
• Port inventories in China inch down: Iron ore inventory at major Chinese ports inched down to 154.9 mnt on 7 April, 2022 compared to 155.6 mnt last week, as per SteelHome data.