Iron Ore Market in Brief: seaborne prices back to almost USD95
Seaborne iron ore prices progressed to strengthen on September 11, being closed at USD 95 per MT CFR China.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 94.66 per ton CFR Qingdao | +1.44 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 95.05 per ton CFR Qingdao | +1.44 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 92.95 per ton CFR Qingdao | +1.92 USD |
MB 58% FE PREMIUM INDEX | USD 82.50 per ton CFR Qingdao | +2.32 USD |
MB 65% FE IRON ORE INDEX | USD 101.40 per ton CFR Qingdao | +1.90 USD |
MB 62% FE CHINA PORT PRICE INDEX | 754 Yuan per wet metric ton | unchanged |
MARKET DRIVERS
China’s iron ore futures largely trended up during the day, with the benchmark January contract ending 1.5% higher than the previous day’s settlement. Iron ore derivatives on the Singapore Exchange also advanced, with the October contract rising further after China’s 3pm close of futures trading, to around USD91 per MT CFR, compared with Tuesday’s settlement of USD88.81 per MT CFR.
Seaborne iron ore trading remained active, with at least seven deals closed on platforms or via miner tenders as of 6.15pm. Prices for October index-linked cargoes generally improved, with
two shipments of Pilbara Blend fines traded at a higher premium of USD3.85 per MT, and two Yandi fines cargoes sold at even narrower discounts of USD3.40-3.50 per MT, after narrowing from almost USD5 per MT last week to USD4 per MT on Tuesday.
Lump premium also traded higher for a second day on Wednesday. Amid a round of restocking by Chinese steelmakers, some products that were previously undervalued have seen price
corrections to more sustainable levels, according to sources.
QUOTE OF THE DAY
“The spot market has been rather active lately, probably prompted by China’s early October National Day holiday for which mills were heard to be stocking up inventories,” a trader said.
PORT PRICES
Pilbara Blend fines were traded at around 735-765 yuan per MT in Tangshan city and Shandong province on Wednesday, compared with 737-760 yuan per MT a day earlier.
The latest range was equivalent to USD96.40-100.50 per MT CFR China in the seaborne market.
Report By: Encieh Arbabi
