Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have mostly remained stable during the past week, moving within a narrow range of $1/mt at around $54-55/mt CFR China, amid significant downside risks and with buyers staying away, traders said on Friday, October 2.
"Extended holidays in China have contributed to the absence of any buying interest. Buyers have not responded to offers since there has been no urgency in restocking and traders representing Chinese steel mills have been averse to carrying stocks," an Orissa-based miner-exporter said.
"Even market fundamentals are perceived to be weak with falling product prices. Also, stocks at Chinese ports are reported to be at higher levels and, even after activity resumes after the Chinese holidays, Indian offers will continue to have downside risks," the miner-exporter added.
Market sources said only a few Orissa-based aggregating traders have concluded transactions for very small volumes at nominal margins, largely owing to their own liquidity issues.