Iron Ore Market in Brief: Seaborne Iron Ore Prices increased in compliance with Futures Market Activity
On Wednesday, October 23 together with the trend observed in the futures market, the seaborn iron ore prices increased.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 87.18 per ton CFR Qingdao | +0.50 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 87.00 per ton CFR Qingdao | +0.67 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 85.66 per ton CFR Qingdao | +0.39 USD |
MB 58% FE PREMIUM INDEX | USD 76.70 per ton CFR Qingdao | +0.33 USD |
MB 65% FE IRON ORE INDEX | USD 95.40 per ton CFR Qingdao | +0.40 USD |
MB 62% FE CHINA PORT PRICE INDEX | 685 Yuan per wet metric ton | +9 Yuan |
MARKET DRIVERS
Chinese benchmark January iron ore futures rallied during the Tuesday night trading session, rising more than 2%, but stayed rangebound for the Wednesday trading session, ending about 1% higher compared with the previous day’s price. Some futures analysts based in Singapore said the initial spike during night trading may have been down to traders seeing an opportunity to “buy-in” when prices seemed low, prompting the rally.
Another Singapore-based iron ore derivatives broker said the rally could have been caused by an initial reaction to a “supply scare” after the news regarding Vale’s suspension of its activities at its Itabiruçu tailings dam but added that market participants probably quickly realized the impact would be minimal.
The Singapore Exchange’s (SGX) November 62% Fe contract traded around USD0.40 per tonne higher than the previous day. November-index-linked cargoes of Pilbara Blend fines (PB fines) were traded between premiums of USD2.75-3.10 per MT, largely steady from the previous day, according to trade sources. In addition, one miner sold a consignment of PB fines on a trading platform at a fixed price of USD87 per MT on a 62% Fe basis, up from the last known transaction of USD 83.68 per MT on a 61% Fe basis, which some traders believed was equivalent to around USD 85 per MT on a 62% Fe basis.
QUOTE OF THE DAY
“The latest traded PB fines cargoes are likely to have been bought up by a trading firm rather than steelmakers, as winter restrictions typically hamper mill appetites for mid-grade fines,” a China-based trade source said.
PORT PRICES
The most-traded January iron ore futures contract closed at 620.50 yuan per MT on Wednesday, up by 4.50 yuan per MT from Tuesday’s closing price.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 616 yuan per MT on Tuesday, up by 4.50 yuan per MT from Monday’s closing price.
Report By: Encieh Arbabi
