Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have moved sideways within a narrow range during the past week, remaining stable at $54-55/mt CFR China, since market participants have been awaiting price directions amid conflicting signals, traders said on Friday, April 8.
“Indian export offers have showed little change during the past week. Both buyers and sellers have been playing a waiting game as the market has been giving conflicting signals,” an Odisha-based miner-exporter said.
“Buyers have been turning down offers expecting a downward correction to set in and considering levels of $55/mt unlikely to be sustained. At the other end, local traders and miners are confused over raw material prices not reacting to the firming up of steel prices,” he added.
At least two traders said that current iron ore offers have been lagging behind and show upside potential as international steel prices are strengthening and as imminent restocking by Chinese steel mills would trigger a raw material price surge.
But another section of the market maintains globally iron ore is still characterized by oversupply and this will continue to put pressure on local offer levels and buyers are unlikely to bite offers above the $55/mt mark, adding that Indian offers will correct by $2-3/mt in the short term.