Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have staged a smart recovery, increasing by $4/mt during the past week to $44.45/mt CFR China, on the back of revived restocking by Chinese steel mills, traders said on Friday, February 5.
"The market has been caught by surprise by the sharp rise in the number of enquiries during the week and exporters have been quick to increase their offer price levels," an Odisha-based miner-exporter said.
"The number of transactions concluded at higher levels also rose sharply and sentiment improved very rapidly," he said.
"With just a few days left before the Chinese New Year holiday, traders representing Chinese steel mills have increased their activity, and offers have also been supported by the firming up of futures contracts," the miner-exporter added.
However, some traders have cautioned against "exuberance" over the recovery since offers will be exposed to a correction when market activity dips as the Chinese holidays commence next week and the outlook will be negative.