The downward trend of the Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) has continued for the second consecutive week, with offers moving down by $9.30/mt during the past week to $67.20/mt CFR China amid weakening futures prices and finished steel prices, traders said on Friday, April 14.
“There are no buyers in the market and no one is clear as to what the next bottom will be. Sentiment and confidence are at a new low,” an Odisha-based miner-exporter said.
“Over the past two weeks, Indian offers have moved down by a massive $13/mt. Transactions have come to a complete halt. Local exporters see no margins at current price levels. Buyers are unwilling to conclude deals as they do not think that the current slump has run its short-term course,” the miner-exporter added.
Market sources said the fears that local traders could face payment defaults by buyers have also prompted several smaller aggregating traders to avoid concluding deals for even small volumes, thereby further impacting overall sentiment.
At least two traders said that their buyers told them that Chinese steel mills are drawing down on existing port stocks and are in no mood to restock or conclude fresh bookings in the current uncertain market conditions.