Iron Ore Market in Brief: Seaborne prices retreat on sharp drop in futures
Seaborne iron ore prices fell on Thursday July 4, while futures prices on the Dalian Commodity Exchange plunged after hitting a five-year high earlier this week.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE INDEX | USD 122.03 per ton CFR Qingdao | +2.72 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 122.03 per ton CFR Qingdao | +2.72 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 124.00 per ton CFR Qingdao | +1.83 USD |
MB 58% FE PREMIUM INDEX | USD 116.23 per ton CFR Qingdao | +1.37 USD |
MB 65% FE IRON ORE INDEX | USD 130.80 per ton CFR Qingdao | +1.80 USD |
MB 62% FE CHINA PORT PRICE INDEX | 895 Yuan per wet metric ton | +13 Yuan |
KEY DRIVERS
Futures on the Dalian Commodity Exchange dropped to 868 Yuan per ton (equivalent to USD 126 per ton) at the close of the afternoon trading session on Thursday, down by around 4.45% from 908.50 Yuan per ton on Wednesday. July swaps contracts on Singapore Exchange also fell from USD 122.60 per ton at the opening of the market to USD 120.70 per ton at the close.
Sentiment was affected by rumors that a group of steel mills had planned to form a working group to look into the steel raw material’s market where prices have hit a five-year high this year. Even so, some sources said that the drop in iron ore prices was more likely to be driven by more fundamental factors, especially the weak downstream market conditions.
Daily MB 62% Fe Iron Ore Index fell by USD 2.72 per ton, while the daily MB 65% Fe Iron Ore Index dropped USD1.80 per ton.
QUOTE OF THE DAY
“Traders may stand by the sidelines to watch how [the formation of the working group and [its] study of iron ore market] unravels,” a Singapore-based broker said.
Report By: Naeemeh Ferdowsi
