Iron Ore Market in Brief: Range-bound prices, recovering low alumina brands
On Friday, physical iron ore prices were rangebound with some signs of price recovery in low alumina products.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 93.76 per ton CFR Qingdao | +0.08 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 92.25 per ton CFR Qingdao | -1.98 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 92.90 per ton CFR Qingdao | +0.82 USD |
MB 58% FE PREMIUM INDEX | USD 82.68 per ton CFR Qingdao | +0.29 USD |
MB 65% FE IRON ORE INDEX | USD 99.30 per ton CFR Qingdao | unchanged |
MB 62% FE CHINA PORT PRICE INDEX | 746 Yuan per wet metric ton | unchanged |
MARKET DRIVERS
On Friday morning China’s steel and iron ore futures recovered however they were picked up in the afternoon. The contracts of benchmark iron ore were finalized almost flat compared with the previous day. Spot iron ore trading activity of the Chinese ports was also slow but active with minor price changes.
There were at least five seaborne deals been concluded via miners’ tenders or in platforms, three of them at fixed prices. A capsize cargo of Brazilian Blend fines were traded at USD 92.90 per MT CFR China for 62% Fe, which was higher than the USD92.25 per MT CFR paid, also on a 62% Fe basis, for a similarly sized shipment of Pilbara Blend fines with similar laycan.
This was the first time that the Brazilian low-alumina brand had been priced higher than the latter in the seaborne market since mid-August. Meanwhile, an index-linked cargo of Yandi fines, also low in alumina content, changed hands at a discount of USD2.30 per MT, narrower than USD3.50-3.80 per MT paid late last month.
This could be viewed in the light of the portside market situation, where the low-alumina brands have already been priced relatively stronger, sources said.
QUOTE OF THE DAY
“High premiums for Pilbara Blend fines are scaring away some buyers, while the relatively lower-priced Brazilian Blend fines seem to be regaining value,” a trader in Singapore said.
PORT PRICES
Pilbara Blend fines were traded at 730-747 yuan per MT in Shandong province and Tangshan city on Friday, compared with 730-750 yuan per MT a day earlier, according to sources. The latest range was equivalent to USD95.70-98.00 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 658 yuan per MT on Friday, up by 0.50 yuan per MT from Thursday’s closing price.
Report By: MohammadReza Barakchian
