The downward movement of Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) has stopped during the past week, with offers instead indicating an increase of $3/mt week on week to $56.60/mt CFR China driven by speculation in futures prices although pessimism has prevailed in the Indian market, traders said on Friday, June 16.
"The futures market might have fallen too fast and its recovery has had positive impact on physical offers too," an Odisha-based miner-exporter said.
"The key fundamental drivers continue to remain negative. For example, reports indicate that stocks at Chinese ports continue to remain at high levels and that Chinese steel mills still prefer to use port stocks rather than make fresh overseas bookings, and this depresses sentiment in the Indian market," the miner-exporter added.
However, two traders interviewed by SteelOrbis expressed mild optimism, pointing out that Indian aggregating traders have received a higher number of inquiries triggered by the firming up of Chinese billet prices and are hoping that the trend will soon translate into a higher number of transactions in the Indian market.