Indian iron ore fines export offers in a narrow range as buyers uncertain over depth of correction

Friday, 07 June 2019 15:15:39 (GMT+3)   |   Kolkata
       

Indian export offers for high grade iron ore fines (with Fe content of 63.5% and above) have moved within a very narrow range and have marginally moved down $1/mt to $96.25/mt CFR China with buyers’ uncertain whether the correction had run its course backed by high volatility in futures trades, traders said on Friday, June 7.

“Range-bound offers are a clear reflection of buyers’ caution. Most buyers have stayed away from making any significant contracts as market participants are not sure if offers have bottomed out or weakening of futures would further pull down offers in the physical market,” an Odisha-based miner-exporter said.

“The fundamental of the raw material market is still rooted to supply shortages and anticipation of lower shipments by global mining majors. But at present the raw material market is being driven by weakening of iron ore futures as also weak Chinese iron and steel futures market,” he added.

According to a steel sector analyst with a Mumbai-based financial advisory firm, speculation in futures contracts is only to be expected after iron ore offers surged to breach the $100/mt mark and contract holders prefer to book profits at market peaks and this unwinding of contracts is having a dampening impact on physical market levels.

Two other traders maintained that there are several uncertainties-global supply situation and short term trends in finished steel prices-which will determine whether iron ore offers are able to break out of the current range-bound movement.


Most Recent Related Articles

India’s Ministry of Steel seeks imposition of BAT on imports to support domestic mills

Ind-Ra: HRC and rebar prices in India to face pressure from higher output

SAIL sees 18% rise in sales in June amid highest-ever monthly exports

Indian mills start suspending HRC offers to China, tradable value in Vietnam down further

India’s coking coal import port traffic down 28% in April-June