Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and above) have recorded modest gains of $1-2/mt during the past week in a price correction after the sharp decrease seen in the previous week, rising to $113-114/mt despite continued volatility and depressed sentiments, traders said.
"There was no change in low transaction volumes and lack of buying interest during the past week. The gains in offers were too small to indicate any change in depressed sentiments after the previous price decline," an Orissa-based miner-exporter said.
"Traders representing Chinese steel mills have not been interested in buying since most Chinese mills have remained cautious about restocking against the backdrop of weak domestic demand. A few small-volume transactions were reported in the market at levels around $115/mt, but the higher level was short-lived with buyers pulling out of the market after counter offers of $110/mt failed to clinch any transactions," the miner-exporter said.
Market sources said that Indian iron ore fines offers are expected to settle at the short-term bottom of around $108-110/mt, since they will not be able to compete with oversupply of high grade lumps ex-Australia.
Indian exporters have not been in a position to offer large single shipments of over 30,000 mt in a single transaction even at lower price levels and neither have exporters been able to match offers for high grade Australian lumps, resulting in low buying interest, sources said.