Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have edged $1/mt lower week on week to $57-58/mt CFR China, amid sideways movement for the most part of the week with the market uncertain over the short-term price direction, traders said on Friday, September 2.
“There are too many mixed signs in the market. Buyers are not too sure whether the fall in offers will gain momentum or not and so are mostly cautious about responding to offers,” an Odisha-based miner-exporter said.
“The market is becoming inactive in terms of both the number of transactions and volumes. Upper levels are not finding any support as key drivers like Chinese port stocks and finished steel prices are indicating uncertain trends,” the miner-exporter added.
Market sources said that the negative outlook is aggravated by the fact that offers seem to be weakening despite lower volumes on offer owing to the rainy season and supply-side tightness.
However, according to two Odisha-based traders, the downside risks from current levels are unlikely to exceed $2-3/mt, as Chinese steel mills are expected to raise finished steel prices, triggering fresh bookings by traders representing them.