Uptrend in Indian iron ore export prices ceases amid weaker Chinese interest

Indian export offer prices for high grade iron ore fines have remained stable at $110-112/mt CFR China, amid low buying interest from Chinese mills, local traders have stated.
 
"Inventory replenishments of Chinese steel mills seems to have hit a pause. But traders and miners have maintained their prices expecting Chinese buyers to return," a western India-based trader said.
 
"High rail freight and export tax rates have prevented miners from lowering prices, even though shipment volumes are low and mostly from pithead stocks. Indian iron ore prices have a downside risk of $5-10/mt if Chinese buying does not revive next week," the trader added.
 
Indian railways charge a higher freight for iron ore meant for exports than ore for domestic consumption.
 
Reports from Indian ore traders indicate that Chinese mills are still carrying stocks at higher prices and that interest in importing from India may revive only if prices fall below the $100/mt mark, a trader in the eastern Indian province of Orissa said.