Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) remained range-bound for the most part of the past week, closing the week at $56-57/mt CFR China, traders said on Friday, August 28.
“Local offers closely tracked the futures market rather than the market fundamentals. From a weekly low of $53/mt offers bounced back to $56-57/mt largely on the back of high plus positions in futures,” an Orissa-based miner-exporter said.
“However, modest gains during the week have not been sustained and the market has been unsure whether prices have bottomed out, with many buyers hoping to conclude transactions at lower levels,” he said.
“Sentiments are still negative and there is a substantial stock build-up at pitheads and oversupply is expected to put pressure on offers with further $2-3/mt downside risk in the short term,” the miner-exporter added.
Some market sources said that the rebound in the equities market in China will at best have a minor salutary impact on raw material prices but doubts have persisted over its sustainability since finished steel prices have remained weak.