Indian export offer for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have edged up by $2.35/mt during the past week to around $57.9/mt CFR China on the back of the modest revival of restocking after traders representing Chinese mills were back in the local market after the holiday, but the outlook has remained pessimistic as volumes were falling at every price rise, traders said on Friday, October 14.
"Of course, there were more buyers in the Indian market. But transaction volumes fell with each rise in offers, indicating resistance in the market and a lack of appetite for big restocking by Chinese mills," an Odisha-based miner-exporter said.
"Also, with the steady fall in volumes as prices inch up, I feel that it is only a matter of time before the upside movement will run out of steam. In fact, I feel a slump below $57/mt CFR China is a distinct possibility when the market resumes next week," the miner-exporter added.
At least two traders felt that the restocking is so mild that it will end soon and exporters will have no option but to lower offers to conclude transactions and such adjustments could be around $1-2/mt.
Market sources said export offers will come under increasing pressure from the supply side, particularly from offerings from Goa where more and more mines will resume production over the current month, as the monsoon season has come to an end.