SteelMint: India iron ore fines export index rises tracking uptick in 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 $60/t FOB east coast on 1 December, 2022, increasing by $7/t w-o-w.

Price indicators:

• One deal from an eastern India-based trader was heard concluded at $70/t CFR China this week. However, it could not be confirmed till the time of publishing this report. No deal was reported in the current publishing window and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received six (6) indicative prices, bids and offers in the current publishing window out of which four (4) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

An Australian iron ore miner has released its monthly discount levels for December, based on the Platts 62% Fe index average for the month. Discount levels for Super Special Fines and Fortescue Blend Fines increased from 8% and 4.5% in November to 12.5% and 9% in December respectively. The discount for Western Pilbara Fines has also increased, from 2% to 3.75% for December.

The new discounts were well received by the majority of market participants, with the widening levels falling within expectations. However, some expected the discounts to be even deeper.

Market highlights

• Global iron ore prices up on positive property market policies: The benchmark Fe 62% fines index rose by $3.70/t w-o-w on 30 November to $101.15/t CFR China as against $96.45/t a week ago. The spot prices of iron ore in China improved w-o-w as market confidence increased following the release of the country's property market policies.
  
  
• DCE iron ore futures increase w-o-w: DCE iron ore futures' January contract closed at RMB 770.5/t ($109/t) on 1 December, up RMB 38.5/t ($5/t) compared to last week.
  
  
• Port inventories in China rise: Iron ore inventory at major Chinese ports moved up to 138 mnt on 24 November compared to 135.45 mnt last week, as per SteelHome data.