Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and above) have declined by $4-5/mt during the past week amid sentiments of panic to the range of $79-80/mt CFR China as buyers have retreated unsure of where the bottom of the market lies, traders said on Wednesday, September 24.
"There has been no response to offers from buyers who have retreated from the market as prices have edged below the $80/mt mark," an Orissa-based miner-exporter said.
"In view of falling steel prices, most buyers are not sure of the bottom level of
iron ore prices and hence are reluctant to remain in the market or conclude any transactions. Offers are mostly indicative as very few transactions are reported in the market," he said.
"There are too many negatives, making the
iron ore price outlook bleak. The combination of the softening of steel prices and oversupply of
iron ore are forcing buyers not to conclude any transactions," he said.
"I have not heard of any transactions for October shipment being concluded during the week," he added.
Market sources said that current offer levels leave negligible margins for exporters, though some traders have even concluded transactions for very small volumes at negative margins just to maintain their market presence.
A section of market sources said that local traders are also very cautious about concluding transactions on the grounds of reports of payments defaults by buyers since several Chinese steel mills and traders representing them are reported to be a facing liquidity crisis.