Iron Ore Market in Brief: with the rough futures trading, seaborne prices fall
On Wednesday September 18th, among the roller coaster ride in the futures market, seaborne prices were softened even more.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 96.42 per ton CFR Qingdao | -0.75 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 96.81 per ton CFR Qingdao | -0.75 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 94.43 per ton CFR Qingdao | -1.70 USD |
MB 58% FE PREMIUM INDEX | USD 85.05 per ton CFR Qingdao | +0.49 USD |
MB 65% FE IRON ORE INDEX | USD 103.00 per ton CFR Qingdao | -0.90 USD |
MB 62% FE CHINA PORT PRICE INDEX | 776 Yuan per wet metric ton | +2 Yuan |
MARKET DRIVERS
China’s iron ore and steel futures started to rise sharply in trading around 11am local time on Wednesday, peaking after 2pm, but followed by an even sharper plunge before the 3pm close. The benchmark iron ore contract rose by as much as 2% from Tuesday’s settlement level but ended 0.7% lower.
Spot iron ore transaction prices at Chinese ports were generally range-bound compared with a day earlier, with persistent buying interest heard for Brazilian Blend fines. Market appetite also turned up for Iron Ore Carajas given its cost-effectiveness now, according to sources.
Seaborne transaction was heard for a second day for the high-grade product at a premium that was largely stable. Iron ore indices mostly fell on Wednesday. The price movements were based on the visible market activity detailed below, which was included in the index calculation according to the published methodology.
QUOTE OF THE DAY
“More Chinese steelmakers are buying Iron Ore Carajas from ports while recently tradable stocks have been tight in Shandong ports, so the seaborne price for the material [quite a few dollars lower than port prices] could have been undervalued,” a mill source in north China told.
PORT PRICES
Pilbara Blend fines traded around 745-785 yuan per MT in Shandong province and Tangshan city on Wednesday, compared with 745-775 yuan per MT a day earlier. The latest range was equivalent to USD 98.10-103.60 per tonne CFR China in the seaborne market.
Report By: Parya Ahmad Pour
