Indian export offers for high grade iron ore fines (with Fe content 63.5 percent and higher) have remained at around $57/mt CFR China amid scarce market activity, a negative outlook and the softening of finished steel prices, traders said on Friday, September 9.
“Volumes have been falling steadily over the past few weeks with all key drivers weak. For example, with finished steel prices in China remaining soft, traders representing Chinese steel mills have refrained from concluding any significant transactions during the week,” an Odisha-based miner-exporter said.
“The negative outlook for iron ore prices has been further reinforced as finished steel prices have failed to react to production cuts by a few Chinese steel mills in line with government directions. With finished steel prices refusing to firm up, any further production cut will put increased pressure on raw material prices,” he added.
Market sources said that, with export offers remaining more or less stable, aggregating traders will also be taking a pause and not taking initiatives to move stocks in the current rainy season, particularly across eastern India, further resulting in low activity.