Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have continued to move within a narrow range, edging down by $1.20/mt during the past week to $55.65/mt CFR China, amid a negative outlook and a lack of interest from traders representing Chinese steel mills ahead of the Chinese National Day Holiday (Oct. 1-7), traders said on Friday, September 30.
"Key drivers are completely absent in the market. Restocking ahead of the Chinese holiday has also failed to emerge, resulting in lackluster export activity in the Indian market," an Odisha-based miner-exporter said.
"Indian offers are expected to be range-bound in the coming weeks as traders representing Chinese steel mills will be absent and, as market activity dips, exporters will keep their offers stable," the miner-exporter added.
Market sources said that offers, having dropped below the $56/mt mark during the past week, have significant downside risk as pressures will mount from the supply side as production from mines in Goa and Odisha is seen to be rising since the monsoon rains have started to abate. Nevertheless, at least two traders pointed out that, with traders representing Chinese steel mills staying away from the market during the week-long holiday ahead, Indian offers will remain range-bound and levels thereafter will be determined by the prospects of restocking if any.