Iron Ore Market in Brief: on the weak futures, prices fall again
Seaborne iron ore prices fell on Tuesday August 27, closing in on USD80 per MT CFR, amid weaker futures and steel markets.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 82.35 per ton CFR Qingdao | +256 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 82.73 per ton CFR Qingdao | +2.56 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 81.07 per ton CFR Qingdao | +3.25 USD |
MB 58% FE PREMIUM INDEX | USD 71.46 per ton CFR Qingdao | +2.03 USD |
MB 65% FE IRON ORE INDEX | USD 91.10 per ton CFR Qingdao | +2.80 USD |
MB 62% FE CHINA PORT PRICE INDEX | 697 Yuan per wet metric ton | +9 Yuan |
KEY DRIVERS
China’s ferrous futures faltered across the board on Tuesday, with the benchmark steel and iron ore contracts ending 3.1-3.7% lower than Monday’s settlement levels. The country’s spot rebar and hot-rolled coil prices also retreated 50-90 Yuan (USD7-12.60) per MT on the day.
Markets were “very bleak” in the day, a mill source in north China told. There was no spot iron ore trading at Chinese ports and prices fell by 5-10 yuan per mt from Monday’s values, according to sources.
Seaborne trading remained lackluster, with no offers or bids seen on trading platforms, although some miners concluded deals via tenders. Low-alumina brands continued to trade at big discounts, given the increasing seaborne supplies of these products and still-thin mill margins in China.
QUOTE OF THE DAY
“Uncertainty about the trade negotiations between China and the United States, as well as [the] negative outlook [in the finished] steel markets, have [maintained the gloomy outlook for] iron ore prices,” a Chinese trader said.
PORT PRICES
Pilbara Blend fines were traded at around 695-710 Yuan per MT in Shandong province and Tangshan city on Tuesday, equivalent to USD90.50-92.60 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 586 Yuan per MT on Tuesday, down by 7.50 Yuan per MT from Monday’s closing price.
Report By: MohammadReza Barakchian
