Indian export offers for high grade iron ore fines with 63.5 percent and above iron content have showed marginal signs of improvement during the past week, rising by $1/mt to a range of $134-135/mt CFR China on the back of improved sentiments even though transaction volumes have remained limited, traders said on Wednesday, December 31.
According to an Orissa-based miner-exporter, transaction volumes have remained low but the return of a few traders representing Chinese steel mills who made inquiries helped to partially reverse the bearish sentiments prevailing in the market since early December.
The market is still critically poised and few local exporters are sure of a definite turnaround in offer levels and offers could move in either direction from current levels, the miner-exporter said.
Market sources said that the low volumes are a cause of concern and short-term downside potential of around $2-3/mt still exists, and only aggressive purchases of volumes by Chinese mills can help stabilize the tentative $1/mt gains made during the past week.