Iron Ore Market in Brief: with the available market uncertainty, seaborne prices edge down to USD 85 per MT
On Tuesday October 29, the seaborne iron ore prices were low with the market uncertainty led on winter demand levels.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 86.64 per ton CFR Qingdao | -1.34 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 86.46 per ton CFR Qingdao | -1.34 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 85.25 per ton CFR Qingdao | -1.40 USD |
MB 58% FE PREMIUM INDEX | USD 76.80 per ton CFR Qingdao | -1.17 USD |
MB 65% FE IRON ORE INDEX | USD 94.90 per ton CFR Qingdao | -1.60 USD |
MB 62% FE CHINA PORT PRICE INDEX | 673 Yuan per wet metric ton | -18 Yuan |
MARKET DRIVERS
On Tuesday, the trend of Chinese benchmark January iron ore futures was mainly downward, ending about 0.8% lower than the previous price. As marketers were generally uncertain about the iron ore outlook as China is preparing for the upcoming winter, which potentially means raw materials low demand according to a futures analyst based in Singapore.
Another analyst said that restocking by steel mills could prompt some support for iron prices, but that remains to be seen as port inventories were heard to be growing and port prices seem to have slumped as well.
The November 62% Fe iron ore derivative contract on the Singapore Exchange (SGX) ended its trading session about USD0.70 per MT lower than the previous settled price. Meanwhile, Brazilian iron ore pellet producer Samarco has been granted a license by the Minas Gerais environment agency, paving the way for the BHP/Vale joint venture to resume operations by the end of 2020.
Iron ore indices fell across the board, with price movements based on the visible market activity detailed below, which was included in the index calculations according to the published methodology.
QUOTE OF THE DAY
“IOCJ supply looks to be limited for now, [but] mill appetites for the high-grade iron ore should support prices during the winter [because] they usually optimize their production efficiency during the heating season,” a China-based trader said.
PORT PRICES
Pilbara Blend fines traded at 670-680 yuan per MT in Shandong province on Tuesday, compared with 680-690 yuan per MT on Friday, according to sources. The latest range was equivalent to USD86.85-88.20 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 622 yuan per MT on Tuesday, down by 5 yuan per MT from Monday’s closing price.
Report By: Naeemeh Ferdowsi
