Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and higher) have showed some consolidation at higher levels, gaining $2/mt during the past week to $65-66/mt CFR China on the back of a rise in transaction volumes and amid reports of a fall in stocks at Chinese ports, traders said on Friday, June 12.
"Several traders representing Chinese steel mills have been back in the market and transaction volumes have also improved sharply during the past week," an Orissa-based miner-exporter said.
"Sentiments too have improved as the market started to discount possibilities of offers falling below the $60/mt mark in the short term, prompting buyers to conclude transactions at current levels," he said.
"Several buyers who received our offers indicated that stocks at Chinese ports were low and restocking gained momentum," he added.
However, a section of market sources cautioned that the upside potential from current offer levels could be limited, considering overbought positions in the futures market could put pressure on physical prices.