Iron Ore Market in Brief: Prices drop below USD100 PMT on building sell-off momentum
Seaborne iron ore prices continued to retreat on Tuesday August 6 with sellers still more pressured than buyers to complete deals.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 97.55 per ton CFR Qingdao | -3.01 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 96.05 per ton CFR Qingdao | -3.01 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 98.32 per ton CFR Qingdao | -2.51 USD |
MB 58% FE PREMIUM INDEX | USD 86.84 per ton CFR Qingdao | -2.04 USD |
MB 65% FE IRON ORE INDEX | USD 106.70 per ton CFR Qingdao | -3.80 USD |
MB 62% FE CHINA PORT PRICE INDEX | 803 Yuan per wet metric ton | -29 Yuan |
KEY DRIVERS
China’s September iron ore futures contract and October steel contracts extended losses during the day, showing lingering pessimism for the markets in the coming months. The August and September 62% Fe iron ore contracts on the Singapore Exchange also fell further by as much as USD2 per MT after the 3pm close of China’s futures market.
At Chinese ports, while spot iron ore transaction prices were already reported in the morning about 20 Yuan (USD2.85) per MT lower than a day earlier, some prices declined 10 Yuan per MT more in the afternoon. Seaborne buying remained inactive during the day, with a September index-linked Cape size cargo of Pilbara Blend fines heard sold by a miner at a premium of USD3.72 per MT, down from USD4.51 per MT last Friday.
In the secondary market however, such shipments are likely available at a premium of USD3.50 per MT, according to sources. Brazilian shipments of Iron Ore Carajas and Brazilian Blend fines offered on platforms still failed to find buyers in the day.
QUOTE OF THE DAY
“Lower grade fines at Chinese ports are relatively resilient in price amid the narrow mill margin status quo. This is weighing on prices of higher grade materials like Iron Ore Carajas, because the low and high grades are usually used as a combo,” a trader in Shanghai said.
PORT PRICES
Pilbara Blend fines were traded around 785-820 Yuan per MT in Shandong province and Tangshan city during the day, compared with 800-845 Yuan per MT a day earlier. The latest price range is equivalent to about $104.80-109.60 per MT CFR China in the seaborne market.
Report By: Javad Najafi
