Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have edged up marginally by $0.60/mt during the past week to $71.10/mt CFR China, even though the mid-week surge in activity fizzled out towards the close of the week, traders said on Friday, September 28.
“Traders representing Chinese steel mills were active early in the week, possibly restocking ahead of the Chinese holidays next week. However, the higher buying activity was not sustained and the market did not find support to consolidate at higher levels from such sporadic buying interest,” an Odisha-based miner-exporter said.
“I think that, with the lull in market activity next week, current offers will not be sustained above the $70/mt mark,” the miner-exporter added.
According to two other traders, there is a lot of stock piled up at port stockyards by aggregating traders, and the excess material on offer in the local market coupled with the expected fall in market activity will put fresh pressures on offers.
An estimated 40,000-45,000 mt of high grade iron ore fines has reportedly been accumulated at port stockyards over the past couple of weeks.
The traders state that the raw material futures market is also showing sharp fluctuations and hence sentiments in the physical market are being impacted as buyers are seen to be pulling out after making enquiries towards the close of the week.