Amoot Iranian Trading Company

China’s return to the market, Rise in prices In spite of some activity in the high grade segment, seaborne iron ore prices were majorly stable on Friday February 8th due to China’s long lunar New Year holiday. MB 62% FE IRON ORE INDEX: USD 85.53 per MT CFR Qingdao, unchanged. MB 62% FE PILBARA BLEND FINES INDEX: USD 86.37 per MT CFR Qingdao, unchanged. MB 62% FE IRON ORE INDEX-LOW ALUMINA: USD 87.32 per MT CFR Qingdao, unchanged. MB 58% FE PREMIUM INDEX: USD 78.74 per MT CFR Qingdao, unchanged. MB 65% FE IRON ORE INDEX: USD 103.30 per MT CFR Qingdao, up USD 2.50 per MT. MB 62% FE CHINA PORT PRICE INDEX: 617 yuan per wet metric MT (implied 62% Fe China Port Price USD 81.33 per dry MT), unchanged. Market Drivers The long Chinese Lunar New Year holiday ended with a silent market. However traders are expecting an ascending trend to emerge next Monday, when China is back to office. There was an offer for Fe 65% cargo of Iron Ore at USD 111 per MT CFR China on Global Ore, which generated a bid of USD 101 per MT CFR delivery. Later, the offer was decreased to USD 110.70 per MT CFR, but no transaction has not been concluded yet. According to a trader, no surprise! It is hard to trade at a fixed number with such high prices. Most of active marketers believe Vale’s announcement of a series anticipated production cuts, will likely prompt iron prices to rise when China returns next week. The 62% Fe Iron Ore Index introduced by MB, published daily by Fastmarkets, was calculated as flat from the previous day, while the daily 65% Fe Iron Ore Index increased by USD 2.50 per MT. The movements in prices were based on the visible market activity. Last not least, Prices should stay still in spite of the news on Vale disruptions when market participants are back to the market next week. Report By: Parya Ahmad Pour