Iron Ore Market in Brief: thin seaborne trading due to the uncertain outlook
There was a slow market of seaborne iron ore on Friday November 1 with the uncertainties about China’s steel markets and policies.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE FINES INDEX | USD 85.56 per ton CFR Qingdao | -0.41 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 85.38 per ton CFR Qingdao | -0.41 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 84.94 per ton CFR Qingdao | +0.31 USD |
MB 58% FE PREMIUM INDEX | USD 75.05 per ton CFR Qingdao | +1.45 USD |
MB 65% FE IRON ORE INDEX | USD 94.80 per ton CFR Qingdao | +0.30 USD |
MB 62% FE CHINA PORT PRICE INDEX | 665 Yuan per wet metric ton | -3 Yuan |
MARKET DRIVERS
China’s steel and iron ore futures dipped briefly early on Friday morning, but they advanced later to end positively in the afternoon close. The November and December 62% Fe derivative contracts on the Singapore Exchange also gained by around USD1.50 per MT compared with the previous day’s settlement level.
Miners made offers for seaborne iron ore cargoes via tenders or on platforms, but only one deal was reported. A Chinese trading company was heard continuing to offer a December-arrival Capesize shipment of Pilbara Blend fines on a fixed-price basis on platforms, but no bidders appeared.
The lowest offer level was equivalent to a premium of USD3 per MT based on the December average of a 62% Fe index, according to sources. The outlook remains unclear for the steel markets and winter production restrictions policies in China, so iron ore buying interest was subdued, especially at fixed prices, they said.
Separately, Brazilian miner Vale said late on Thursday that it had triggered a level 1 emergency protocol at its Forquilha IV dam, located at the Fábrica Mine, as a preventive measure. It “does not affect production plans for 2019 and the plan to resume the production of about 50 million MT remains unchanged,” according to Vale.
QUOTE OF THE DAY
“Steel prices have been firming up recently in China, so it looks like iron ore prices are unlikely to drop too much,” a trader in Shanghai said.
PORT PRICES
Pilbara Blend fines continued to trade at 660-665 yuan per MT in Tangshan on Friday. The latest range was equivalent to USD87.00-87.70 per MT CFR China in the seaborne market.
DALIAN COMMODITY EXCHANGE
The most-traded January iron ore futures contract closed at 625.50 yuan per MT on Friday, up by 5 yuan per MT from Thursday’s closing price.
Report By: Javad Najafi
