Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have closed the week at the same level as one week ago at $67.10/mt CFR China after the week’s high of $70/mt failed to be sustained amid downward pressure and the retreat of buyers at higher price levels, traders said on Friday, July 21.
“The correction in offer levels was expected as prices had moved up too fast. However, the fundamentals of the market such as finished steel prices have remained strong and so downside risks from current levels will be limited,” an Odisha-based miner-exporter said.
“The week’s high could not be sustained largely because of the slump in the futures market. At the same time, buyers anticipating a correction became unwilling to conclude deals at higher levels,” the miner-exporter added.
However, according to another trader, supply is tight in the Indian market as stocks available at aggregating traders are down owing to logistical issues between mines and stockyards because of monsoon rains, and only miner-exporters are in a position to conclude transactions for large volumes. Traders also point out that the number of buyers decreased towards the end of the week, indicating unwillingness to conclude transactions at the level of $70/mt.