India: Low-grade iron ore fines export index rises $3/ w-o-w in recent trades

• Fe57% fines cargo actively sold in the market
  
  
• Discount narrows w-o-w for Indian fines
  
  

India's iron ore fines export market witnessed a mild recovery this week on 16 April, with prices rebounding by $2-3/t amid improved trading activity and stronger demand signals from overseas buyers.

Prices, deals

BigMint's bi-weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $2.5/t w-o-w to $63.5/t FOB east coast on Thursday, 16 April 2026. Meanwhile, CFR China prices for Indian-origin iron ore also rose w-o-w to $78/t with higher vessel freight rates.

Around 400,000 t iron ore export deals were concluded, in which majority of them were Fe 57% cargo by the east coast-based miners. Few Fe 54-55% fines cargo also traded in the sea market from western India at around 17% discount.

According to sources, Fe 57% fines export deals were concluded at around a 19% discount to the global fines index, while lower-grade Fe 54-55% fines were transacted at discounts in the range of 23-35% on an FOB east coast basis. Exporters are currently quoting discounts of 1920% for similar grades, with multiple deals still under negotiation.

Market scenario

Market participants noted that buying interest, particularly from Chinese mills, picked up during the week. Several mills directly procured cargoes from Indian miners, especially single-mine shipments, at a premium, indicating renewed confidence in Indian-origin material. This shift in buying behavior supported price recovery and improved overall market sentiment.

An exporter highlighted that "discount levels have now stabilized compared to previous weeks, and the recent deals have brought some confidence back into the market." The exporter further added that a few traders are also exploring opportunities to liquidate their cargoes in the seaborne market, supported by improving liquidity.

International traders expressed similar sentiments, stating that market conditions have strengthened due to rising inquiries and improved deal flow. One trader mentioned that "the ongoing BHP CMRG discussions and recent deal closures by Australian miners have positively influenced market sentiment, indirectly supporting Indian fines in the global market."

Another international trader pointed out that while miners have successfully concluded some low-grade export tenders, traders are still cautious due to elevated vessel freight rates. These higher logistics costs, partly driven by geopolitical tensions in the Middle East, are limiting aggressive participation from trading houses.

Sources indicate that several additional export tenders are expected to be floated by Indian exporters in the near term. Market participants believe that while recent deals have lent support to prices, volatility is likely to persist in the short term, influenced by freight dynamics, global demand trends, and ongoing trade negotiations.

Domestic vs export market

Domestic prices exceeded export realizations by around INR 300/t ($3/t), with the gap shrinking by INR 300/t ($3/t) w-o-w. Iron ore fines (Fe 57%) prices in Odisha were recorded at INR 3,850/t ($43/t) ex-mines, stable w-o-w on 16 April. Meanwhile, the ex-mines realization in exports from the Barbil region was recorded at INR 3,550/t ($37/t).

Chinese iron ore fines prices stable w-o-w: The benchmark iron ore fines Fe 61% index remained largely stable w-o-w at $106/dmt CFR China on 15 April. Prices rose as market liquidity improved with the return of major miners and easing restrictions on mid-grade products. The uptick was supported by increased inquiries and higher pig iron production at mills. While trade activity may improve, mills remain cautious and await clearer price direction before bulk procurements.

DCE iron ore futures rise: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract closed at RMB 775.5/t ($112/t) on 16 April, increasing by RMB 20/t ($3/t) w-o-w and RMB 16/t ($2/t) d-o-d.

Rationale

• One deal for Fe 57% was recorded during this publishing window. Therefore, T1 trade was given 50% weightage in the index calculation. For the detailed methodology, click here.
  
  
• BigMint received seventeen (17) indicative prices in the current publishing window, and fourteen (14) were considered for price calculation as T2 inputs and given rest 100% weightage.
  
  

Outlook

Iron ore export prices are expected to remain volatile, and a few more deals are anticipated in the market, currently being assessed under negotiations.