Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and above) have remained unchanged during the past week in the range of $134-135/mt CFR China amid lackluster buying interest and very low transaction volumes, traders said on Tuesday, January 7.
According to two Orissa-based miner-exporters, very few traders representing Chinese steel mills have been showing any buying interest and only a few transactions for very low volumes have been reported in the market and these have not represented any material change in the stagnant market conditions.
The miner-exporters said that the local market is quite confused over the low buying from Chinese mills, considering reports that domestic ore production in China continues to be low amid adverse weather conditions.
However, market sources said that, considering the sharp weakening in offers last month from levels of $138-139/mt, the current stagnant prices are more of a reflection of consolidation at current levels, with buyers preferring to wait on the sidelines for offers to settle at short-term lower support levels.