Iron Ore Market in Brief: China’s holiday and flat seaborne prices
Seaborne iron ore prices remained flat on Friday, October 4 in a quiet session, with most Chinese market participants still on a week-long break.
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
Trade negotiations between the United States and China are going to be taken place on Thursday, October 10. Some market analysts said this could prompt market participants to stay on the sidelines while they await a decision to emerge from the trade negotiations.
However, seaborne iron ore prices should still gain support from re-stocking activities by Chinese steelmakers before the winter restrictions being executed, beginning mid-November, according to a Singapore-based trader.
No significant trading activity was reported in the key export outlets for pig iron from the Commonwealth of Independent States during the week ended Thursday, October 3, with buyers pessimistic about falling scrap prices in the United States.
The US is the largest global importer of pig iron. Weekly price assessment for high-manganese pig iron, export, FOB main port Black Sea, CIS, declined to USD270-280 per MT on Thursday, from USD290-295 per MT a week earlier. “Trade will resume when the first deal [is agreed] to the US and it becomes clear how low pig iron has dropped,” one trader said.
No firm pig iron offers were heard in the US, except one at USD325 per MT FOB from a Russian supplier. This price was unworkable for buyers, however, who were intent on buying at a price below USD295 per MT CFR, or about USD270 per MT FOB.
“With scrap falling, mills will use less pig iron at costs of more than USD300. But with iron ore where it is, producers will cut pig iron output,” one buyer said. “I think we will have to wait to see what happens after scrap settles during the week.” In Italy, offers were heard at USD305-310 per MT CFR, equivalent to about USD280-285 per MT FOB Black Sea. But the workable price for buyers was no higher than USD295 per MT CFR, or USD270 per MT FOB, although for large tonnages it could go as low as USD280-285 per MT CFR, or USD255-260 per MT FOB.
Weekly price assessment for pig iron, import, CFR Italy, was USD295-305 per MT on October 3, down from USD315-320 per MT a week before. The assessment of the price for hot-briquetted iron, CFR Italian ports, was USD220-225 per MT on the same day, down from USD250 per MT last week. HBI was available from stocks at a price equivalent to USD220-225 per MT CFR, several sources said.
Price assessment for low-manganese pig iron, export, FOB main port Baltic Sea, CIS, was unchanged at USD305-310 per MT on October 3 because no market activity was reported. Offers from Russia’s Tulachermet, the only pig iron supplier in the Baltic Sea region, were heard at USD325 per MT FOB, but that price was not considered to be workable for buyers.
Report By: Mehrdad Najafi
