Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have edged down by $1/mt during the past week to $73.35/mt CFR China as restocking by Chinese steel mills ahead of the Chinese New Year holiday has tapered off and is expected to remain range-bound as the number of active buyers in the market continues to dwindle, traders said on Friday, January 25.
“As expected, restocking by Chinese steel mills ahead of the holiday has failed to gather momentum as the mills were cautious about building excessive raw material inventories. Both the number of buyers and the volumes traded during the past week have indicated a steady downtrend,” an Odisha-based miner-exporter said.
“Also, with Chinese port stock prices easing, Chinese steel mills have gradually reduced overseas bookings and in the Indian market towards the close of the week too many offers have been chasing too few buyers,” the miner-exporter added.
According to two other traders, miners in eastern India are already offering discounts to domestic iron ore buyers in anticipation of the expected lack of market activity during the Chinese holiday and of overseas buyers being absent during the period.