Indian iron ore fines export offers continue to gain amid volatile market conditions

Friday, 12 July 2019 17:42:43 (GMT+3)   |   Kolkata
       

Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have continued to consolidate at higher levels gaining $4.60/mt week on week to $113.35/mt CFR China in a market marked with volatility and mild intermittent correction, traders said on Friday, July 12.

“The market is on an uptrend but there are signals of overheating and of the market being pulled in opposite directions by two elements. First, tight supply continues to have a bullish impact on offer levels. However, secondly, at the other end there are concerns on the demand side that Chinese finished steel production could see a fall in the medium term and lower demand for iron ore. These two elements are conflicting, resulting in high volatility in the market,” an Odisha-based miner-exporter said.

“In fact, the market is awaiting clearer signals regarding Chinese steel production and the resultant demand for raw materials before offers can stabilize, possibly above the $100/mt mark,” the miner-exporter added.

According to two other local traders, even though the average volume of contracts has fallen during the past week with buyers cautious about concluding transactions at higher levels, there has been strong demand for low grade iron ore fines with a section of traders representing Chinese steel mills showing preference for it.

Market sources said that aggregating traders who were reportedly holding large stockpiles of low grade iron ore fines have been able to significantly liquidate large volumes of such material over the past two weeks.


Most Recent Related Articles

Uptrend of Indian pellet export prices slows down as buyers become cautious

Indian pellet export prices continue to surge, sales volumes increase

Import scrap prices in India rise due to UAE export ban, demand weak

Indian pellet export prices touch two-month high

Rising import scrap prices in India and mills’ tight liquidity limit trade