Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have decreased by $1/mt during the past week to $43-44/mt CFR China amid sparse activity and the withdrawal of buyers from the market, traders said on Friday, February 12.
“Restocking by traders representing Chinese steel mills have tapered off and buyers have been pulling out of the market due to the Chinese holidays,” an Odisha-based miner-exporter said.
“Offers are expected to move sideways as the market is not sure of the immediate direction once buyers return after the holidays. However, iron ore prices are unlikely to remain above the $40/mt mark in the short term, as reports indicate that Chinese steel mills’ appetite for the raw material is dwindling,” he added.
Market sources said that the negative outlook will deteriorate as market activity resumes since all indications are that the Indian government is unlikely to reduce the 30 percent export tax on iron in the forthcoming national budget to be placed before the Indian parliament later this month.