Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have increased during the past week by $3/mt to $57-58/mt CFR China, riding on gains in steel prices and restocking, although the upward momentum has showed signs of weakening towards the close of the week, traders said on Friday, April 15.
“The number of transactions as well as volumes are up and restocking has been busy in response to the strengthening of steel prices,” an Odisha-based miner-exporter said.
“But towards the close of the week, the market has seemed to run out of steam as the weekly high of $60/mt failed to be sustained. So there still might be some resistance to higher offers,” he added.
Sources said that the raw materials market is expected to cool down over the next week as steel prices in the spot markets seem to have hit upside resistance.
“The medium-term outlook for iron ore remains uncertain because the fundamentals of steel prices remain weak despite the spike in prices this week,” an Odisha-based trader said.
A section of the market maintains that Indian offers will test a new bottom level of around $55/mt next week in the absence of any fundamental support.