Iron Ore Market in Brief: Seaborne prices fell to USD 85 with the weak tendency
On Monday, October 21, the seaborn iron ore prices continued their isolation just over USD 85 per MT CFR China and this all was amid the pessimism about prices and margins.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 85.40 per ton CFR Qingdao | -0.96 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 85.05 per ton CFR Qingdao | -0.35 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 84.24 per ton CFR Qingdao | -0.69 USD |
MB 58% FE PREMIUM INDEX | USD 75.25 per ton CFR Qingdao | -0.23 USD |
MB 65% FE IRON ORE INDEX | USD 93.60 per ton CFR Qingdao | -1.30 USD |
MB 62% FE CHINA PORT PRICE INDEX | 685 Yuan per wet metric ton | unchanged |
MARKET DRIVERS
Chinese steel and iron ore futures fell on Monday morning and mostly stayed weak for the rest of the day’s trading session. The November 62% Fe contract of iron ore derivative on the Singapore Exchange was also traded moderately lower than last Friday.
Negativity remained among Chinese marketers on steel prices and margins, which put some iron ore sellers in a hurry to cash in, according to sources. Air pollution in China’s eastern Shandong province led local authorities to require some steelmakers to stop sintering operations for five days, sources claimed on Monday.
Some sources at two mills in Shandong have confirmed they were affected by the measure, while a source at another local mill said that it was exempt due to the air conditions at its specific location. The restrictions may weigh on spot demand for iron ore fines in the province but support the consumption of lumps and pellets, market participants stated.
A miner sold a cargo of Pilbara Blend fines at a fixed price just above USD 85 per MT CFR on 62% Fe basis, while November-index-linked shipments of the product could probably be traded at a premium around USD 3 per MT in the secondary market, compared with at least USD 4 per MT a week ago.
Meanwhile, the November-index-based premium of high-grade Iron Ore Carajas material stayed relatively steady, with the workable level likely to be around USD 1.50-2.50 per MT, sources said.
QUOTE OF THE DAY
“More Chinese mills are looking for Iron Ore Carajas, because they are under profit pressure and turning to some cheaper low-grade materials, which requires the high-grade ore for balance,” a trader in Shanghai said.
PORT PRICES
Pilbara Blend fines still traded at 670-690 yuan per MT in Shandong province and Tangshan city on Monday, according to sources. The latest range was equivalent to USD87.90-90.60 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 611.50 yuan per MT on Monday, down by 4.50 yuan per MT from Friday’s closing price.
Report By: Parya AhmadPour
