Indian export offers for high grade
iron ore fines (with Fe content of 63.5percent and above ) have continued to remain under pressure during the past week, softening by $2/mt to the range of $78-79/mt CFR
China, traders said on Tuesday, September 30.
" Offers are merely indicative since no significant transaction volumes have been reported during the week, since offers have not attracted any bids nor have buyers been inclined to conclude any significant transactions," an Orissa-based miner-exporter said.
"A small rebound in prices of long products in the Chinese market did not have any impact on restocking of
iron ore by Chinese steel mills. Having fallen below the $80/mt mark and with no fundamental support evident, buyers are not sure of the eventual bottom level of prices and so they have stayed away from fresh bookings," he added.
Market sources said that, apart from weak fundamentals and oversupply in the market, the overall softening of prices of finished steel will continue to cause Chinese steel mills to stay away from aggressive restocking.
At the same time, sentiments in
India have remained depressed after the Indian government turned down submissions of miner-exporters for a reduction in the 30 percent export tax on
iron ore in view of the slump in global prices and the sharp erosion of margins of exporters.
The Indian government in response has conveyed to miners that the rationale of the export tax is based on conservation of natural resources and does not have any relation to prevailing international prices, a senior government official said.