Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and above) have declined by $5/mt during the past week to the range of around $92-93/mt CFR China as buyers have continued to be absent even at lower levels, traders said on Wednesday, July 23
"Offer levels are merely indicators since no significant transactions have been reported in the market. Having fallen sharply on Wednesday, some modest restocking may surface if downward momentum is maintained," an Orissa-based miner-exporter said.
"Buyers prefer to wait on the sidelines. They are not inclined to conclude any transactions in the absence of any short-term market direction," he said.
"The markets are in a bear grip. On the one hand, traders representing Chinese steel mills have been waiting for most part of the week for a further fall in offer levels. On the other hand, there are reports that most of the larger Chinese steel mills hold sufficient iron ore stocks. Under these circumstances, an immediate resumption of restocking can be ruled out unless Indian offers weaken and become very attractive," he added.
Market sources said that the short- and medium-term outlook for Indian iron ore exports continues to be negative. Apart from the lack of interest from overseas buyers, local miners are facing increasing costs of operations and transportation in view of the monsoon rains becoming widespread, in particular in the eastern Indian iron ore producing province of Orissa, the sources added.