Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have failed to sustain their mid-week high of $95/mt amid high volatility and have fallen back to $90.80/mt CFR China, recording a loss of about $1/mt over the past week, traders said on Friday, February 24.
“Clearly speculation in futures drove up local physical offers but, in the absence of strong fundamental drivers, higher levels have not been sustained,” a Odisha-based miner-exporter said.
“Volatility is extremely high. Offers during the week fluctuated in band of $2-3/mt in either direction. It is very difficult for miner-exporters to conclude transactions amid such high volatility and uncertainty regarding the short-term trend,” the miner-exporter added.
At least two other traders said that several buyers representing Chinese steel mills have retreated from the market after receiving offers at $95/mt, indicating that they were expecting a correction the very next day.
The traders pointed out that fundamentals like finished steel prices are seen to be retreating and are not providing support for offers to stabilize at higher levels, but added that there is still optimism that increases will consolidate in the medium term despite volatility.