Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have decreased by $1.1/mt during the past week to $64.4/mt CFR China, as a lack of buying interest in Indian fines has persisted and given reports of Indian exporters failing to meet previous commitments, Friday, July 5.
“Traders representing Chinese steel mills have stated that mills are continuing to restock high grade Brazilian lumps and are uninterested in high alumina-content Indian fines. Whether this shift in raw material preference is temporary or an emerging trend, it is difficult to forecast at this point of time, even as transaction volumes for us have fallen drastically over the past few weeks,” an Odisha-based trader said.
“Even a modest gain in offer levels on the last day of the week (Friday) and the strengthening of futures prices in Chinese exchange have failed to have any positive impact on the Indian market,” the trader added.
According to market sources, there have been reports in the market that a few aggregating traders have failed to complete deliveries against transactions concluded early in the month, citing inclement weather conditions and logistical issues, and this has further compounded the bearish mood among buyers.