Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have declined by $6/mt during the past week to the range of $58-59/mt CFR China, with higher levels failing to hold ground amid resistance from buyers, traders said on Friday, May 6.
“There has been a significant weakening of sentiment and outlook as buyers have been unwilling to make any fresh bookings during most of the week, anticipating that offers will fall below the $60/mt mark once again,” an Odisha-based miner-exporter said.
“The market might have gained on the back of false hopes of supply shortages and stability in finished steel prices. Clearly, this did not happen as indicated by the rapid slide in offer price levels,” the miner-exporter said.
“Fresh buying is unlikely to emerge unless a new bottom below $57/mt is seen by the market,” he added.
Sources said that the weakening of finished steel prices will continue to put pressure on raw materials, and Indian iron ore fines prices are expected to shed another $2-3/mt from current levels.
It has also been pointed out that negative fundamentals like the rise in iron ore production in March in China and the increased inventories at Chinese ports will exert negative pressure on Indian iron ore export offers.