Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have moved in a narrow range for most part of the week, edging down by a marginal $0.70/mt week on week to $70.50/mt CFR China, due to the pressures resulting from the over-supply and fewer buyers as traders representing Chinese steel mills started to withdraw towards close of the ahead of Chinese holidays next week, traders said on Friday, September 21.
“As seen since early September, there is more exportable materials available in the local market with iron ore mines in eastern India increasing production,” an Odisha-based miner-exporter said.
“Aggregating traders have built up sufficient stocks at port stockyards and in a market where small volume transactions are dominating, this is putting pressure on offer levels. At the same time, traders representing Chinese steel mills are also fewer, contributing the softening of market activity,” the miner-exporter added.
According to two other traders, offers are expected to remain range-bound with few buyers expected to be active in the local market next week.