SteelMint's India low-grade iron ore export index up $4/t on pre-holiday restocking in China

SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $70/tonne (t) FOB east coast on 12 January, 2022, up $4/t w-o-w. As per sources, restocking by steel mills in China before the Lunar New Year holidays led to the rise in prices this week.

India's iron ore export shipments were recorded at 604,613 t in the first week of January in comparison with 518,472 t in the last week of December, as per vessel line-up data maintained with SteelMint.

Export deals totalling about 200,000 t of low-grade iron ore fines were recorded from India at $68-70/t FOB in the last few days. However, out of this a 55,000 t deal was not confirmed by the seller before compilation of this index.

Price indicators

• Four deals were heard concluded from eastern India-based players in the current publishing window. But three deals were taken into price calculation and hence accorded 50% weightage under T1 trade. Click here for the methodology.
  
  
• SteelMint received ten (10) indicative prices, bids, and offers in the current publishing window and nine (09) were considered for price calculation as T2 inputs and given 50% weightage.
  
  

Market highlights

• Global iron ore prices improve on healthy buying activity: The benchmark Fe 62% fines index rose by $7/t w-o-w on 11 January to $124/t CFR China as against $117/t a week ago. Spot prices of iron ore in China increased w-o-w amid optimistic sentiments and a strong market forecast.
  
  
• DCE iron ore futures rise w-o-w: DCE iron ore futures' May 2023 contract closed at RMB 852/t ($126/t) on 12 January, up RMB 13/t ($2/t) compared to last week. On a daily basis, it increased by RMB 8/t ($1/t).
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched up to 134.1 mnt on 5 January last compared to 133.65 mnt last week, as per SteelHome data.
  
  

Chinese mills are restocking raw materials ahead of the Lunar New Year, so demand may increase next week on expectations of better realisations in post-holiday trade.