Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have declined below the psychological mark of $70/mt, falling by $2-3/mt during the past week to the range of around $69-70/mt CFR China, traders said on Tuesday, November 25.
"Sub $70/mt offers are strong indications that bearish market conditions are here to stay. No trader or miner-exporters have been interested in concluding transactions at such levels and hence volumes in the market have remained negligible," an Orissa-based miner-exporter said.
"Most buyers representing Chinese steel mills have not even responded to offers. In a steadily falling market with no short-term bottom in sight it is natural for buyers to keep postponing transactions," he said. "At the same time, current prices do not offer any margins to exporters, resulting in the gloom and doom sentiments all around," he added.
Market sources said that, in the absence of any transactions or short-term support in sight, most market sentiments have revolved around speculating on the next possible bottom level of $60/mt.