Iron Ore Market in Brief: Picked up physical prices on future gains
Physical iron ore prices strengthened on Thursday September 26 following gains in the futures market.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 90.91 per ton CFR Qingdao | +0.57 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 91.30 per ton CFR Qingdao | +0.57 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 89.45 per ton CFR Qingdao | +1.79 USD |
MB 58% FE PREMIUM INDEX | USD 80.05 per ton CFR Qingdao | +1.03 USD |
MB 65% FE IRON ORE INDEX | USD 97.70 per ton CFR Qingdao | +0.70USD |
MB 62% FE CHINA PORT PRICE INDEX | 733 Yuan per wet metric ton | -2 Yuan |
MARKET DRIVERS
China’s iron ore futures have rebounded since Wednesday night and, despite intraday volatility, the benchmark January contract still managed to end Thursday 2.2% higher than the settlement level a day earlier. The October 62% Fe derivative contract on the Singapore Exchange rose by about USD1.70 per MT by 6.15pm local time, compared with the previous day’s settlement level.
Physical iron ore trading remained generally inactive during the day because of a key industry conference in the eastern Chinese city of Qingdao. Fixed price offers and bids appeared on platforms for Pilbara Blend fines and Brazilian Blend fines, but no deals were concluded by 6.15pm. Seaborne iron ore indices all rose for the day.
At port, Pilbara Blend fines were still being traded at 725 yuan per MT in Shandong province on Thursday, according to sources. The latest price was equivalent to USD94.20 per MT CFR China in the seaborne market.
In Dalian Commodity Exchange, the most-traded January iron ore futures contract closed at 637 yuan per MT on Thursday, up by 12.50 yuan per MT from Wednesday’s closing price.
QUOTE OF THE DAY
“The strict restrictions on steelmakers in northern cities such as Tangshan could lead to a pile-up of unsold iron ore cargoes, and dent prices,” a mill source in east China said.
Report By: Mehrdad Najafi
