Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have been volatile during the past week but at the end of week show no net change from the range of $84-85/mt CFR China seen one week ago, against a backdrop of uncertainties regarding Chinese steel prices, traders said on Wednesday, September 17.
"There has been high volatility both ways during the past week amid extremely low volumes, while gains were not sustained as buyers pulled out," said an Orissa-based miner-exporters.
"Indian offers were reacting to weak physical and futures Chinese steel prices. Buyers were uncertain of short-term movements, submitting bids only to pull out of the market," he said.
"Local traders and miners have been caught in a bind. Current offers have been too low, leaving them with negligible margins. At the same time, buyers are not sure about concluding transactions, even for small volumes," he added.
Market sources said that Chinese steel mills are unlikely to begin substantial restocking of raw materials since billet prices have been falling steadily and hence the mills are unwilling to lock up liquidity in raw material build-ups.
The marginal recovery in offer levels during the week was not sustained, further compounding buyers' worries that
iron ore prices may not have bottomed out, resulting in their cautiousness and in the low volume of transactions, the sources said.