The previous rally in Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) has been replaced by a soft trend during the past week with offers declining by about $1/mt to around $63.40/mt CFR China, with buyers retreating due to the higher price levels, traders said on Friday, July 7.
“Offers had moved up too fast in the previous week, gaining $8/mt. It seems the market is now undergoing a correction, with buyers seen to be retreating and not willing to conclude transactions at the past week’s high of $65.40/mt and with offers falling back thereafter,” an Odisha-based trader said.
“The fundamentals are not strong enough to provide adequate support for raw material prices. Chinese billet prices have softened during the week and this has impacted bookings of raw materials by traders representing Chinese steel mills,” the trader added.
At least two other traders said that buyers have received offers during the past week but have not responded with transactions, indicating that buyers are resisting the recent increases, particularly in view of the uncertainties over prices of semi-finished and finished steel.