Iron Ore Market on Feb 18th 2019
On Friday, February 15th 2019, Iron ore prices were experiencing little changes. Though Chinese holiday had finished and buyers returned to the market, they are cautious for iron ore purchasing. The price list is as follow:
MB 62% FE IRON ORE INDEX: $88.16 per tonne cfr Qingdao, down $0.16 per tonne.
MB 62% FE PILBARA BLEND FINES INDEX: $87.55 per tonne cfr Qingdao, down $0.16 per tonne.
MB 62% FE IRON ORE INDEX-LOW ALUMINA: $88.96 per tonne cfr Qingdao, down $0.65per tonne.
MB 58% FE PREMIUM INDEX: $81.08 per tonne cfr Qingdao, down $0.15 per tonne.
MB 65% FE IRON ORE INDEX: $100.50 per tonne cfr Qingdao, up $0.60 per tonne.
MB 62% FE CHINA PORT PRICE INDEX: 656 yuan per wet metric tonne (implied 62% Fe China Port Price $86.40 per dry tonne), down 1 yuan per wet metric tonne.
Market Drivers:
Though Chinese iron ore prices were changing in a limited range, steel rates retreated because of low demand. It is about two weeks that Japanese and south Korean iron ore buyers are trying to buy iron ore because of Vale accident. Some of them had received an announcement about a force major situation and others are waiting to receive Vale’s statement in this regard. Chinese mills mostly are refusing to import iron ore and even if they need, they prefer to buy from ports.
Vale’s Feijão dam accident made lump supply tight; therefore iron ore lump demand has increased in China and ex-China. Joint Pilbara fines and lumps cargoes had about 2.30~2.40 $ per MT as premium for 62% Fe index plus lump premium.
Important to note that on Friday, Vale declared a fire on its distribution center in Malaysia which occurred on a belt conveyor system. This accident has very little impact on iron ore supply as it only damaged raw materials according to Vale’s announcement. About 10~15 days later, operations will resume and this period coincides with a 10 days maintenance time which was planned and declared previously by Vale.
As mentioned MB 62% Fe iron ore index decreased 0.16 $ per MT while MB 65% Fe iron ore index improved 0.60 $ per MT on Friday.
Best Term of the day:
According to a trader from Shanghai, it is expected that the new accident in Vale distribution center of Malaysia will have no significant influence on iron ore supply by Vale as the recovering period coincides with the declared 10 days maintenance period that was planned previously.
Report By: Mehrdad Najafi
