Declines in Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have continued for the third consecutive week, with offers moving down by $4/mt during the past week to $63.20/mt CFR China amid the negative outlook on finished steel prices and the ongoing weakness of the futures market, traders said on Friday, April 21.
“The pace of downward movement may have slowed down over the past week, but the very fact that offers have shed $13/mt in just two weeks has created nervousness all around,” an Odisha-based miner-exporter said.
“And like in any falling market, there are no buyers as most do not feel that current levels are the bottom and prefer to wait for a further fall,” the miner-exporter added.
However, at least two traders point out that billet and steel prices have started showing tentative signs of a recovery towards the end of the week, but the market is not sure whether the upturn will be sustained or be strong enough to reverse the negative trends in raw materials. They say that, despite the marginal recovery in product prices, Chinese steel mills are more focused on reduction of stocks of finished products and of port stocks of raw materials and traders representing Chinese steel mills are being asked not to conclude any fresh overseas deals.