Indian iron ore fines export offers move up but mood remains cautious

Friday, 27 July 2018 16:40:09 (GMT+3)   |   Kolkata
       

Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have  moved up by $2/mt during the past week to $67.60/mt CFR China, but the mood has remained cautious in the local market with the gains in question coming on the back of few transactions and low volumes, traders said on Friday, July 27.

“Export offers are unlikely to break out and consolidate at higher levels. The gains during the past week have been restricted to just a few transactions that were concluded by aggregating traders. With few buyers active in the market, restocking by Chinese steel mills is unlikely to gather pace and support offers at the higher levels,” an Odisha-based miner-exporter said.

“Another indication against consolidation is the fact that the few low-volume transactions were concluded at higher levels even though the futures market was showing a weakening trend,” the miner-exporter added.

Two other local traders said that they hear from their buyers that Chinese steel mills are willing to rely on port stocks and are in no rush to restock raw materials, and this has contributed to muted sentiment despite the gains in offers across low volumes.

The traders said that the strike called by truck operators across India which started on Friday, July 27, with operators threatening to continue it indefinitely, will further negatively impact the market in the coming week as it will hamper the movement of raw material from pitheads to stockyards and traders will be hamstrung in meeting delivery schedules amidst such uncertainties.


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