Indian export offers for high grade iron ore fines (FE content 63.5 percent and above) softened by $2/mt to range of $55-56/mt CFR China as buyers retreated from the market on expectations of further weakening of offers and dwindling business activity due to Chinese holidays during the week, traders said on Friday.
“A large part of disinterest in buying stemmed from general negative trend in finished steel prices in China. Market activity is also impacted by the long weekend in China for Mid-Autumn festival. Buyers deferred concluding transactions ahead of the holidays expecting further declines,” an Odisha based miner-exporter said.
“The market is expecting modest revival of restocking activity by Chinese steel mills after the holidays. On the other hand, low prices for Chinese port stocks could be persistent which would put pressure on local offers as well,” he said.
“Hence considering that offers could go either way, the market adopted a cautious wait-and-see policy resulting in few low volume transactions reported in the market during the week,” he added.
Sources said that traders are disappointed with the Indian Ministry of Finance reportedly declining petitions from the Ministry of Mines for a reduction in the 30 percent export tax on high grade iron ore fines.