Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have edged down by $1/mt over the past week to the range of $64-65/mt CFR China, amid high market volatility with offers falling to a weekly low of $61/mt on three consecutive days but staging a tentative recovery towards the end of the past week, traders said on Friday, April 29.
“The market has been indicating sharp fluctuations ever since offer levels hit the high of $70/mt in the previous week. Although recovering from a weekly low of $61/mt, the market is still gripped with uncertainty as regards the short-term trend,” an Odisha-based miner-exporter said.
“It became obvious from the trends of correction during the week that buyers were unwilling to conclude transactions at levels around $70/mt and are expected to return to the local market only after fluctuations eased and offers have settled at around $60/mt, which would more accurately reflect the current fundamentals,” he added.
“Though there was a recovery from the weekly low of $61/mt, upside potential will be limited and prices are unlikely to hit the previous high of $70/mt as buyers are seen to be resisting such offers,” the miner-exporter said.
Market sources pointed out that steel futures too are seen to be weakening and this is an indication any rise in raw material prices too will remain reined in.
The sources said that local traders are keeping a close watch on international steel futures which have been driving local raw material offers and key directions might emerge next week after Labour Day.