Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have failed to sustain their mid-week high and have fallen back to close the week unchanged week on week at $67.90/mt CFR China, as buyers are seen to be resisting any offers close to the $70/mt mark, traders said on Friday, July 28.
“Clearly there is very strong resistance to the $70/mt mark. The market failed to breach the level of $69.30/mt despite the optimism over finished steel prices and restocking by Chinese steel mills,” an Odisha-based miner-exporter said.
“But despite restocking, buyers representing Chinese steel mills are cautious about concluding transactions at higher levels due to fears of a downside correction,” the miner-exporter added.
At least two other traders said that, while fundamentals like finished steel prices have remained strong and though there is optimism in the market for the medium term, the market has not enough momentum to breach the $70/mt mark.
The traders said that reports received indicate that, rather than making fresh bookings overseas, Chinese steel mill are turning to stocks at Chinese ports for now, expecting the raw material market to cool down.