Indian iron ore fine export offers decline amid talk of buyers’ liquidity problems

Friday, 30 October 2015 17:00:08 (GMT+3)   |   Kolkata
       

Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have dropped below the psychological barrier of $50/mt, losing $3/mt during the past week to around $48-49/mt CFR China amid the negative outlook on steel prices and buyers' liquidity problems, traders said on Friday, October 30.
 
"Sentiment has dipped sharply during the past few days. The outlook for finished steel prices has become more negative and Chinese steel mills are unwilling to conclude fresh raw material transactions, avoiding inventory buildups," an Orissa-based miner-exporter said.
 
"Market reports have indicated that a few traders representing Chinese steel mills are facing liquidity issues. Despite offers falling below the $50/mt mark, no significant transactions have been reported in the market as few are sure of the next bottom," the miner-exporter said.
 
"The market has been rife with talk of $40/mt being the next bottom before the New Year. And while some have discounted such a possibility, most market participants state that offers have yet to hit the bottom and still hold downside risks even from current levels," he added.
 
Market sources said that the Indian market has also taken note of reports published by a few research firms warning of drastic problems imminent for Chinese steel mills and even of the possibility of a few of them closing down.
 
Market sources said that local offers are also being impacted by oversupply particularly from miners in Goa which are increasing their output and shipments after reopening mines over the past two months.
 
The sources said that Vedanta has announced shipments of at least 5 million mt during the current fiscal year from its Goa mines, while Fomento Resources has also stepped up shipments from its Goa mines.
 
Even though exports from Goa have all been for low grade iron ore fines by miners, the higher volumes entering the market have nudged out aggregating traders operating around the eastern province of Odisha and this has further impacted sentiments, the sources added.

Similar articles

Iron ore prices drop by over $9//mt week on week, mood remains bad

28 Mar | Scrap & Raw Materials

Goa government to ease policy for liquidating iron ore dumps lying on private land

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

Brazilian high-grade iron ore price declines sharply in two days

27 Mar | Scrap & Raw Materials

Daily iron ore prices CFR China - March 27, 2024

27 Mar | Scrap & Raw Materials

India’s JSPL takes operational charge of iron ore complex in Venezuela

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

Vale selected to begin award negotiations for US briquette plant

26 Mar | Steel News

Daily iron ore prices CFR China - March 26, 2024

26 Mar | Scrap & Raw Materials