Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have continued to increase during the past week, rising by $2.40/mt to $75.90/mt CFR China, on the back of the sustained strength of finished steel prices and the tightening of iron ore supply in the Indian market, traders said on Friday, August 11.
“Surging billet and finished steel prices in China are prompting traders representing Chinese steel mills to increase their booking volumes in the Indian market. Apart from steel mills, even overseas traders are reported to have made large-volume bookings on their own account” an Odisha-based miner-exporter said.
“Indian iron ore offers having increased by $8/mt over the past two weeks, while talk of an imminent correction has dissipated with many market players now expecting the $80/mt mark to be breached. Irrespective of whether such a target is a reality or not, it indicates the strong bullish sentiment which prevails in the market” the exporter added.
At least two other traders have stated that iron ore supplies for exports are becoming progressively tighter, since miner-exporters are not in a position to ramp up production in the short term given the widespread monsoon rains, while aggregating traders are predominant in concluding transactions at the higher levels.