Iron Ore Market on Feb 19th 2019

On Tuesday Feb 19th, iron ore prices had changed variously. The MB 65% Fe Iron Ore Index slightly decreased but the MB 62% Fe Iron Ore Index experienced a small increase according to a concluded trade. The prices are as follow: MB 62% FE IRON ORE INDEX: $89.21 per tonne cfr Qingdao, up $0.89 per tonne. MB 62% FE PILBARA BLEND FINES INDEX: $88.61 per tonne cfr Qingdao, up $0.90 per tonne. MB 62% FE IRON ORE INDEX-LOW ALUMINA: $90.07 per tonne cfr Qingdao, unchanged. MB 58% FE PREMIUM INDEX: $78.74 per tonne cfr Qingdao, down $2.41 per tonne. MB 65% FE IRON ORE INDEX: $100.60 per tonne cfr Qingdao, down $0.20 per tonne. MB 62% FE CHINA PORT PRICE INDEX: 657 yuan per wet metric tonne (implied 62% Fe China Port Price $86.57 per dry tonne), down 1 yuan per wet metric tonne. Market drivers: There was an uptick in MB 62% FE IRON ORE INDEX, increasing from 89$ per MT to 89.21 $ per MT. But still it doesn’t reach the February 11 high of 90 .58 per MT cfr. One cargo of 61% Fe Pilbara Blend fines was sold at 87.18 S per MT cfr China through a public tender, loading on March. This rate has an uptick of 0.88 $ per MT in comparison with the same cargo which was sold on February 14 at 86.30 $ per MT cfr China. Steel mills do not demand iron ore, causing iron ore prices to remain unchanged from Monday. The current iron ore rates are too high and not affordable for steel makers so they refuse to purchase iron ore. A seaborne 58% Fe Yandi fines was sold at a slightly higher discount in comparison with the last commerce due to the increasing interest in low grade products of iron ore. China’s iron ore futures were range bound on Tuesday 19 February but at the end of the day it increased though steel futures moved down. The MB 62% Fe iron ore increased 0.89 $ per MT. On the other hand the MB 65% Fe iron ore fell 0.20 $ per MT. The Best Term of the day: According to a Singapore based trader, it is unlikely to experience any shortage in Australian iron ore fines at Chinese ports as the trades are showing quite flat rates. It seems that steel makers are refusing to purchase iron ore as they are waiting for decrease and believe that these rates are high. Report By: Naeemeh Ferdowsi
24 February 2019