Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have continued to soften, edging down by $1/mt over the past week to $43-44/mt CFR China as buyers have stayed away from the market fearing a sharp negative impact from reported high speculative activity in the futures market, traders said on Friday, November 27.
"There has been virtually no activity during the past week and traders representing Chinese steel mills have not even responded to offers," said an Odisha-based miner-exporter.
"Reports available here indicate that most buyers fear the impact of a sharp rise in speculative activity and short selling in the futures market and even the possibility of a payment crisis," the miner-exporter said.
Sources said that the local market has been caught by surprise by increased volatility in the futures market even though prices of semi-finished and finished products have continued to soften to lower levels.
"The fact remains unchanged that buyers are now looking to sub-$40/mt offers and the fundamental negative outlook will prevail despite the volatility of futures," an Odisha-based aggregating trader said.