Indian export offers for high grade iron ore fines (with Fe content of 63.5 percent and above) have slumped sharply during the past week below the $130/mt level, falling by $3-4/mt to the range of $128-129/mt CFR China as market sentiment has worsened and as buyers have pulled back anticipating a further weakening in February, traders said on Monday, January 20.
Two Orissa-based miner-exporters said that with no buying support emerging at the $130/mt mark, most buyers are expecting the downward correction to gain further momentum and have retreated from concluding any transactions in anticipation of lower offers next month.
Sentiment in the market has been very poor as even a few offers for low volumes failed to be converted into transactions and as the negative outlook for iron ore exports has been gaining momentum by the day, the miner-exporters said.
Market sources said that local traders are discounting the possibility of any strong support at current offer levels since traders representing Chinese mills are not inclined to conclude deals based on reports that mills in China are planning lower production and steel product exports.