Indian export offers of high grade iron ore fines (with Fe content of 63.5 percent and higher) have moved within a very narrow range for the most part of this week, ending the week marginally up $0.1/mt at $71.2/mt CFR China amid limited trades and a cautious mood, traders said on Friday, September 14.
“The market lacks direction with the market unsure of key drivers. Buyers are cautious and concluding only limited trades as the market could move in either direction from current levels,” an Odisha-based miner-exporter said. “Mid-week lower levels revived some buying interest but this soon petered out as offers tended to move up. Uncertainties and conflicting reports on production cuts likely to be imposed on Chinese steel mills have kept traders representing the latter on the sidelines,” he added.
Trading sources said that, with mines in eastern Indian steadily increasing production, supply-side pressures on prices are expected to mount now that the rains in the regions are receding and as aggregating traders are able to restock sufficient volumes at port stockyards.
They said that a marginal correction is expected by the market and offers falling below the $70/mt mark may trigger renewed buying interest, but it will be critical for traders representing Chinese steel mills to become fully active in the local market.