SteelMint's India low-grade iron ore export index edges up w-o-w

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $66/tonne (t) FOB east coast on 5 January, 2022, up $1/t w-o-w. Sources stated that most mills in China were running iron ore stocks at a low level, resulting in higher expectations for restocking demand.

Exports from India turned active post removal of 50% duty on low-grade ore. India's iron ore export shipments were recorded at 518,472 t in the fourth week of December in comparison with 328,280 t in the previous week, as per vessel line-up data maintained with SteelMint.

Price indicators

• A couple of deals were heard concluded from eastern India-based players in the current publishing window. However, since the deals could not be confirmed, they were accorded 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received twelve (12) indicative prices, bids and offers in the current publishing window and eight (08) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Traders said that despite China's removal of pandemic-induced restrictions, the fear of rising COVID-19 cases continues to plague the market. Demand for low-grade ore continues to remain supported in China amidst lower steel margins. A few deals were heard concluded. However, they could not be confirmed till the time of publishing this report.

Market highlights

• Global iron ore prices improve on positive buying interest: The benchmark Fe 62% fines index rose by $2.25/t w-o-w on 4 January to $117/t CFR China as against $114.75/t a week ago. Spot prices of iron ore in China increased w-o-w as liquidity continued to increase and market players were optimistic about steel demand following China's Lunar New Year break.
  
  
• DCE iron ore futures rise w-o-w: DCE iron ore futures' May 2023 contract closed at RMB 851.5/t ($121/t) on 5 January, up RMB 6.5/t ($1/t) compared to last week. On a daily basis, it increased by RMB 5/t ($1/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 133.65 mnt on 29 December last compared to 135.5 mnt last week, as per SteelHome data.