Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have remained mostly range bound during the past week with higher levels failing to sustain and offers falling back by $1/mt to the range of $57-58/mt CFR China, reflecting the fundamental weakness in steel prices and mills reluctance to restock, traders said on Friday, September 18.
"It has been clear during the week that market players' strong upside resistance after the $60/mt mark has not been sustained," an Orissa-based miner-exporter said.
"Higher levels have failed to attract any significant transactions and traders have been forced to adjust their offers, but this strategy has also failed to push up volumes," the miner-exporter said.
"The spikes in offers were driven by positions in the futures markets but the outlook has continued to be negative with no upturn in steel prices evident in the medium term," he added.
Market sources said that mild restocking by Chinese steel mills has also fizzled out as importing traders have not been willing to conclude large transactions ahead of the approach of the week-long holidays in China.