Indian export offers for high grade iron ore fines (with Fe content 63.5 percent and above) have continued to move downwards, decreasing by $1/mt week on week to $59.7/mt CFR China amid scarce trading activity and nervousness regarding the production restrictions on Chinese steel mills, traders said on Friday, November 3.
“We are hearing a lot about production restrictions on Chinese steel mills from our buyers. This is creating nervousness in the Indian market about the demand outlook for raw materials,” an Odisha-based miner-exporter said.
“Although the pace of downward movement seems to have eased, buyers are still not sure of the short-term price trends. Buyers are waiting for a further fall to a new bottom, while the Indian market is expecting a rebound above the $60/mt mark, resulting in a lull in activity,” he added.
Market sources said that most key drivers including billet prices are showing negatives and signals that restocking by Chinese steel mills is not imminent in the short and medium term. They also said that the bearish market conditions will also put a dampener on Indian miners who have already reduced their capacity utilizations as fines have few takers in the domestic market.