Iron Ore Market in Brief: derivatives losses cause seaborne prices dip
On Thursday, October 31st the seaborne iron ore prices made weak with the derivatives markets’ losses.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 85.97 per ton CFR Qingdao | -1.16 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 85.97 per ton CFR Qingdao | -1.16 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 84.63 per ton CFR Qingdao | -0.97 USD |
MB 58% FE PREMIUM INDEX | USD 73.60 per ton CFR Qingdao | -2.32 USD |
MB 65% FE IRON ORE INDEX | USD 94.50 per ton CFR Qingdao | -0.30 USD |
MB 62% FE CHINA PORT PRICE INDEX | 668 Yuan per wet metric ton | -2 Yuan |
MARKET DRIVERS
China’s steel and iron ore futures were rangebound on Thursday morning, but they retreated in the afternoon. The November and December 62% Fe derivative contracts on the Singapore Exchange fell as well, shedding around USD1 per MT in the afternoon.
Limited physical iron ore trading activity was reported during the day, with an industry conference held in South China’s Xiamen city. Cargoes at Chinese ports were traded at prices similar to or slightly lower than a day earlier, according to sources.
Capesize shipments of Pilbara Blend fines to arrive in China in late November to early December were likely tradable at the November average of a 62% Fe index at a premium around USD2 per
MT, they added.
QUOTE OF THE DAY
“Production restriction uncertainties for mills in northern China and the seasonal lull in the coming winter are still weighing on iron ore market sentiment,” a trading source in Singapore said.
PORT PRICES
Pilbara Blend fines remained traded at 660-670 yuan per MT in Tangshan city and Shandong province on Thursday. The latest range was equivalent to USD86.80-88.20 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 620.50 yuan per MT on Thursday, down by 2 yuan per MT from Wednesday’s closing price.
Report By: Mehrdad Najafi
