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

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $65/tonne (t) FOB east coast on 29 December, 2022, stable w-o-w. Trading activity was muted, with the majority of market participants cautious about acquiring more material given the decline in buying interest of mills.

Export deals from India turned active post removal of the 50% duty on even low-grade ore. India's iron ore export shipments were recorded at 330,000 t in the third week of December in comparison with 360,000 t in the previous week, as per vessel line-up data maintained with SteelMint.

Price indicators

• No deal was reported in the current publishing window and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received thirteen (13) indicative prices, bids and offers in the current publishing window and twelve (12) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

Sources said that most mills in China were running iron ore stocks at a low level, resulting in higher expectations for iron ore restocking demand, while the Chinese New year holiday period is also approaching next month. Demand for low-grade ore continues to remain supported in China amidst lower steel margins. A few deals were heard concluded at around $78-79/t CFR China. However, they could not be confirmed till the time of publishing this report.

Market highlights

• Global iron ore prices improve on positive seaborne liquidity: The benchmark Fe 62% fines index rose by $3.1/t w-o-w on 28 December to $114.75/t CFR China as against $111.65/t a week ago. Spot prices of iron ore in China increased w-o-w as spot liquidity continued to increase and market players were optimistic about steel demand following China's Lunar New Year.
  
  
• DCE iron ore futures rise w-o-w: DCE iron ore futures' May contract closed at RMB 845/t ($121/t) on 29 December, up RMB 27.5/t ($4/t) compared to last week. On a daily basis, it increased by RMB 9.5/t ($1/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 135.5 mnt on 15 December compared to 136.15 mnt last week, as per SteelHome data.