Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have closed the week at the same level as one week ago at $66/mt CFR China, moving in both directions within a narrow range of less than $0.50/mt during most days of the week in the absence of any buyers in the market, traders said on Friday, October 6.
“The long national holiday in China has ensured that there are virtually no buyers of significant volumes in the market. Only a few Singapore-based traders have made inquiries for small volumes which too did not translate into transactions,” an Odisha-based miner-exporter said.
“But the fundamental negatives of the market such as softening finished steel prices, imminent production cuts by Chinese steel mills and unwinding of futures contracts will ensure a negative outlook when full market activity resumes next week,” he added.
Two other traders said that buyers are still not sure whether current offer levels have bottomed out and hence are expected to wait before making significant transactions in the market.
The traders said that the market still has about a 10 percent downside risk from current levels and there is a lot of talk in the market of offers stabilizing as a short-term bottom of $60/mt.