Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have recovered from mid-week dips and has closed the week at $80/mt CFR China, even as outlook remained positive, traders said on Friday, September 1.
Traders said that having fallen to a mid-week low of $7/mt, offer levels have bounced back at close of the week as lower levels triggered sharp rise in transaction volumes. But offers have failed to breach the previous week’s close, the traders added.
“The market is consolidating at higher levels and the mid-week lows as part of short term correction is expected in a rising market” a Odisha based miner exporter said.
“The local market is facing resistance on the rise and hence over the past two weeks the level of $80/mt has not been breached and offers are falling back from such a level. But clearly with support from strengthening of finished steel prices and tight supplies in local markets, the overall upward trend will be maintained” the exporter added.
Two other traders said that supply side tightness is also providing support as most aggregating traders have dwindled stocks over the past few monsoon months and will have to wait for another month to re-stock once mines start to increase capacities.
In fact, the these traders said that most aggregating traders are not able to conclude large volume transactions which in turn is expected to continue to boost market conditions.