Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have risen by a significant $8/mt week on week to the range of $65-66/mt CFR China, amid a sharp rise in transaction volumes and restocking activity, even though offers retreated from the weekly peak of $70/mt, traders said on Friday, April 22.
"Restocking by Chinese steel mills and the volume of transactions concluded by traders representing them have continued to increase during the past week," an Odisha-based miner-exporter said.
"In addition, the market has been characterized by supply side tightness. Most mines in
India are facing lower stock availability as the current heat wave across the country has resulted in a lowering of mine production," the miner-exporter said.
"Although higher levels of $70/mt failed to be sustain, the outlook remains positive as the fall from the peak was seen as more of a correction than a fundamental change to the upward trend," he added.
Market sources said that several aggregating traders have not able to conclude higher volume transactions as they were not sure of stock availability and transportation issues because of heat wave conditions around mines in the state of Odisha. This, the sources said, tightened the supply side further, providing support for upward gains in offer levels.
"There might be some move towards a correction next week. But, with any increase in mine production limited during the current months amid hot weather conditions, the market is expecting a further consolidation of offers to around the $70/mt mark in the medium term, according to an Odisha-based trader.