Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have failed to maintain modest mid-week gains and so offers have edged down by $2/mt week on week to $58/mt CFR China, with buyers staying away amid the uncertain market direction, traders said on Friday, May 26.
"Buyers are unwilling to conclude transactions as they are unsure of the market direction. Even modest gains and offers touching the $60/mt mark during the week have not been sustained," an Odisha-based miner-exporter said.
"Most of the trading activity of Chinese steel mills is confined to port stocks. Traders representing Chinese steel mills are not responding to Indian offers," the miner-exporter added.
At least two other traders said that the short-term outlook is "not good" as Chinese steel mills are expected to rely on port stocks and are unlikely to rush into overseas transactions in view of production adjustments by several Chinese mills.
At the same time, Indian market activity is also expected to slump further in view of the expected spread of monsoon rains across the country starting next month, which will force most Indian aggregating traders to withdraw from the market.