Indian export offers for high grade iron ore fines of 63.5 percent and above Fe content have gained $3-4/mt during the past week to around $96-97/mt CFR China, but markets have remained unconvinced of a revival as the rise came amid continued low volumes, traders said on Tuesday, July 8.
"The iron ore export market is suffering from a lack of any direction. The medium-term outlook is negative and I do not see any support emerging either," an Orissa-based miner-exporter said.
"No large transaction volumes are reported. And offers moved sideways for most part of the week and moved up amid low volumes only towards the close of the week," he said.
"I do not place much hope in the gains made during the week since they came amid very low volumes. Of course, one positive is that a further sharp fall may be discounted in the short term," he added.
Market sources said that it has been learnt from traders representing Chinese steel mills that the latter are restricting transactions to Chinese port stocks and this is reflected in low buying interest for Indian iron ore.
Local traders state that, while prices are unlikely to suffer a sharp fall in the short term, upside support is also unlikely to emerge unless the tight liquidity faced by steel mills in China eases, thereby prompting large-scale resumption of restocking.