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 increasing by $1.2/mt to $69.20/mt CFR China, on slack buying by traders representing Chinese steel mills although the market mood continued to be cautious owing to mid-week dips in offer levels, traders said on Friday, June 15.
“Offers are moving up tentatively. I cannot say that the market is consolidating at higher levels as evident from mid-week dips,” a Odisha based miner-exporter said.
“It is still too early to say if the $70/mt price level will be breached. The buying support is not strong enough for the market to do so or consolidate such gains in the short term,” he added.
According to market sources, while the number of buyers active in the local market and receiving enquiries, most of the transaction volumes are on the lower side, indicating that the $70/mt price level may be crucial and the market may move either direction over the next few trading sessions.
The sources said that one of the reasons for low volumes of Indian iron ore fines is possibly the shift in preference of Chinese steel mills towards high grade lumps and hence though offers of Indian fines is seen to be edging up actual volume transactions continued to remain low.