Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have increased by $2.6/mt week on week to around $65.5/mt CFR China, amid renewed optimism and fresh buying support by traders representing Chinese steel mills and the latters’ attempt to push up finished steel prices, traders said on Friday, November 4.
“The week has been marked by a sudden positive change in sentiment. Far greater transaction volumes have been concluded at higher levels,” an Odisha-based miner-exporter said.
“The market here is buoyant amid reports received that Chinese steel mills will continue push up prices to improve margins. Over the medium term, the improved margins can only lead to higher levels of restocking of raw materials and provide support for local export offers,” he added.
According to at least two traders, traders representing Chinese steel mills however are seen to be reducing their interest in low grade iron ore fines from regions like Goa and are instead transacting higher volumes for high grade fines, supporting Indian exporters to improve their margins.