Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have moved within a narrow range, declining by $1/mt during the past week to $46-47/mt CFR China, amid sharply reduced market activity due to the festival season, while the outlook has remained negative, traders said on Friday, November 13.
"Most traders remained out of the market because of the Festival of Lights during the week. Miners who are operational also reported negligible transactions," an Odisha-based miner-exporter said.
"Buyers have not pushed to conclude transactions since, with Chinese finished steel prices on a new downturn, most expect a substantial downside risk next week and so have deferred new transactions," the trader said.
"There is lot of talk in the market of $40/mt being the next bottom," he added.
A section of the market considers the present range-bound movement in local offers amid inactive market conditions to be a precursor to a downside risk of at least $2-3/mt when activity resumes next week.