Indian export offers for high grade
iron ore fines (with Fe content of 63.5 percent and higher) have continued to suffer from a worsening negative outlook, declining by $4/mt during the past week to the range of $109-110/mt CFR
China, traders said on Tuesday, April 29.
"There are no positives in the local market to provide support for offers. It is a complete bear market at the moment, with no short-term revival in sight," an Orissa-based miner-exporter said.
"There has been a lot of nervousness among local traders about the liquidity position of several Chinese steel mills and traders representing them," he said citing reports of Chinese authorities launching investigations into funding of
iron ore purchase contracts.
Market sources said that even lower offer levels have failed to trigger any buying activity with transaction volumes remaining negligible during the week.
The sources said that local traders are cautious about concluding transactions in view of reports received in
India that Chinese traders have been facing problems in securing letters of credit from their bankers.