SteelMint: India low-grade iron ore fines export index falls in absence of trade

SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports stood at $46/tonne (t) FOB east coast, down $5/t w-o-w. Global iron ore price drop, weaker iron ore and steel futures and preference for lumps in China have weighed down bids for Indian ore in China.

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 eight (08) indicative prices, bids and offers in the current publishing window and four (04) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

"Market indications for Indian-origin fines Fe 57% are at $65-75/t, CFR China. But no firm deals have been heard. On the other hand, increasing freight rates are again impacting FOB prices," said a source.

Vessel freight rates from eastern India to China for a supramax vessel were heard to have increased from $19-20/DMT levels to $21-23/DMT levels.

Market highlights:

• Fe 62% iron ore prices drop $7/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines decreased $6.9/t w-o-w to $126.6/t CFR China on 18 May as against $133.5/t a week ago. Seaborne iron ore prices continued to decline on subdued demand.
  
  
• DCE iron ore futures increase sharply w-o-w: DCE iron ore futures' September contract closed at RMB 818/t ($121/t) on 19 May, an increase by RMB 22/t ($3/t) compared with the previous week. On a daily basis, prices increased by around RMB 27/t ($4/t).
  
  
• Port inventories in China inch down: Iron ore inventory at major Chinese ports inched down to 141.75 mnt on 12 May compared to 145.35 mnt last week, as per SteelHome data.