SteelMint: India iron ore fines export index edges up on improved trades

India's iron ore export market has witnessed active trade activities in the last one week. The index stood at $66/t FOB east coast on 15 December, 2022, increasing by $4/t w-o-w. As per sources, deals of around 220,000 t of iron ore fines were heard concluded in the past one week by eastern India (Odisha)-based miners and traders.

Price indicators-

• Several deals from eastern India-based trader was heard concluded at $79/t CFR China this week. However, it could not be confirmed till the time of publishing this report and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received eleven (11) 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.
  
  

A few participants were not confident of the recent increase in iron ore fines prices in China, dismissing the improvement as largely being driven by speculation. A series of Chinese government actions, such as relaxing of pandemic-related restrictions boosted the market and resulted in fines prices firming up.

Market highlights

• Global iron ore prices improve on optimistic Chinese real estate market: The benchmark Fe 62% fines index rose by $2.3/t w-o-w on 14 December to $109.75/t CFR China as against $107.45/t a week ago. The spot prices of iron ore in China rose w-o-w on the expectation that the annual Central Economic Work Conference in China would include measures to stimulate the real estate sector.
  
  
• DCE iron ore futures increase w-o-w: DCE iron ore futures' May contract closed at RMB 830/t ($119/t) on 15 December, up RMB 40/t ($6/t) compared to last week. On a daily basis it is increased by RMB 21.5/t ($3/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 136.35 mnt on 8 December compared to 137.5 mnt last week, as per SteelHome data.