Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have come under renewed bearish pressures during the past week, softening by $6/mt to the range of $92-93/mt with buyers continuing to desert the market, traders said on Tuesday, June 3.
"The bearish outlook in the iron ore market has become more widespread and prices have begun to consolidate below the $100/mt mark. A rebound does not look like a possibility in the short term," said an Orissa-based miner-exporter.
"Local offers and sentiments suffered big setbacks amid reports that several Chinese steel mills have been selling seaborne cargo," he said.
"Local traders have been continuously lowering offers but there are no takers for Indian ore in the market," he added.
Market sources said that on Monday, June 2, sentiments showed some signs of stability on the back of a rise in the number of enquiries but this could be short-lived since transaction volumes have continued to be negligible.
Even if Chinese mills are compelled to commence restocking, they are likely to book just small quantities given market uncertainties and this would not provide sufficient support for offers, the sources added.
Another Orissa-based miner said that the current bearish outlook for Indian iron ore offers has been expected to worsen with the gradual spread of monsoon rains later this month, which will likely disrupt mining operations and logistics.