Indian export offers for high grade
iron ore fines (with Fe content of 63 percent and higher) have continued their declining trend during the past week, falling by $3/mt to about $103/mt as buyers have stayed away from concluding any significant transactions, traders said on Wednesday, May 13.
According to an Orissa based miner-exporter, there has been hardly any activity in the market and buyers have not even been seeking offers.
Reports received in
India indicate that Chinese steel mills prefer to maintain minimal levels of raw material stocks in view of the liquidity crunch many of them are facing, he said.
As a result, the transaction volume in the local market has remained negligible with even lower offers failing to evoke any interest and the market has not found much support, he added.
Sources said that the ongoing bearish trend in
iron ore exports and, with sub-$100/mt levels now the current talk of the market, buyers have preferred not to conclude transactions until prices have bottomed out. There has also been considerable oversupply in the market with stocks in the state of Goa being put up for sale through e-auction, the sources said.
At the same time, it has been reported that stocks at Chinese ports have been increasing, rising by 2-3 million mt during the past week, and in such market conditions Indian export offers are unlikely to find any support in the short and medium term, the sources added.