Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have edged up by $1/mt during the past week to around $81/mt CFR China, while the short-term trend has remained uncertain and it is unclear whether the current price level will be sustained, traders said on Friday, December 30.
"The very fact that the buyers are seen to be retreating every time offers move above the $80/mt mark indicates that the uptrend is inviting resistance and the outlook for the New Year is uncertain," an Odisha-based miner-exporter said.
"Export offers are so poised that they can move either way in the New Year. Key drivers, like finished steel prices and capacities in production in China, are still too tentative to provide strong support for offers to breach current levels," the miner-exporter added.
At least two traders pointed out that for most of the past week gains in offers on one day were followed by losses the following day and as a result traders representing Chinese steel mills were seen to be receiving offers but most have not responded to follow up with transactions.
Sources point out that even the futures market is showing signs of running out of steam after a month-long volatility and bearish indications for the short term.