Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have declined by $3/mt during the past week to the range of around $75-76/mt CFR China amid a worsening outlook, traders said on Tuesday, November 11.
"The fundamental outlook for the
iron ore market is very bleak amid a lack of support for prices. The steadily falling offer levels have pushed out all buyers from the local market," an Orissa-based miner-exporter said.
"There is a lot of talk among market participants of offers seeking a next low of $65/mt and even declining further to $50-55/mt next year. This has only fuelled nervousness and buyers are not expected to conclude transactions amid speculation on such further declines," he added.
Market sources said that, with major global
iron ore miners announcing expansion plans,
India will further lose its significance in the global markets. Indian miners will be hamstrung in their ability to increase export volumes owing to various restrictive legislative measures and high export tariffs, while falling global prices will continue to squeeze export margins
Shipment volumes are expected to shrink over the next few months as miners and traders find it more attractive to sell in the local market than to export, the sources said.