Iron Ore Market in Brief: Seaborne prices unchanged, restocking to boost next week’s demand in China
With the absence of Chinese market participants on China’s National holidays the seaborne iron ore prices stayed flat on Thursday October 3rd 2019.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 93.38 per ton CFR Qingdao | unchanged |
MB 62% FE PILBARA BLEND FINES INDEX | USD 92.91 per ton CFR Qingdao | unchanged |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 91.72 per ton CFR Qingdao | unchanged |
MB 58% FE PREMIUM INDEX | USD 82.28 per ton CFR Qingdao | unchanged |
MB 65% FE IRON ORE INDEX | USD 100.40 per ton CFR Qingdao | unchanged |
MB 62% FE CHINA PORT PRICE INDEX | 739 Yuan per wet metric ton | unchanged |
MARKET DRIVERS
With the Chinese market expected to return on October 7th due to Chinese seven day long National holidays, the participants are yet absent and the prices unchanged. It has been expected that demand for iron ore in China be healthy after Chinese steel mills return from the holiday because most are likely to be restocking ahead of the upcoming winter production restrictions.
“Upcoming winter restrictions should not be any stricter compared with last year, and the Chinese government looking into injecting additional stimulus into its construction sector,” a Singapore -based Trader claimed.
Separately, Brazilian iron ore export volumes in September reached 27.14 million MT, down 20% from the 33.90 million MT exported in September 2018, according to the country’s economy ministry. Accordingly, no visible activity was observed in ports and the Dalian Commodity Exchange was closed.
In Brazil, according to figures released by the country’s economy ministry, Brazilian iron ore export volumes decreased year on year in September, but revenues rose due to higher prices. The country shipped 27.14 million MT of iron ore last month, down 20% from the 33.90 million MT exported a year earlier. But revenues increased by 4.4% on the year to a total of USD1.85 billion, compared with USD1.77 billion in September 2018.
Iron ore 65% Fe Brazil-origin fines, CFR Qingdao averaged USD99.84 per MT last month, up USD3.67 per MT from USD96.17 per MT a year earlier, and slightly higher than August’s $99.17 per MT.
Prices for 62% Fe iron ore hovered around $90-100 per MT CFR Qingdao for most of September and were up 2.8% from a month earlier on average, while the 65% Fe market saw a more modest
0.7% rise over the same period.
Month on month, Brazilian iron ore exports declined by 4.13% in September from August’s 28.30 million MT, while revenues fell by 24.7% from USD2.45 billion. The average fob price in August was USD86.60 per MT.
Report By: MohammadReza Barakchian
