Iron Ore Market in Brief: Prices correct, but high-grade ore still strong
Seaborne iron ore prices went through corrections on Monday April 15, while prices for high-grade products remained robust, was heard.
KEY DRIVERS
While China’s futures and spot steel prices trended higher during the day, iron ore derivatives prices stayed range-bound.
A Capesize cargo of Pilbara Blend fines to be loaded at the end of May traded at a fixed price that was USD1.54 per ton lower on a 62% Fe basis than that fetched by a miner last Friday, for a similar
shipment to be loaded at the start of next month.
An index-linked bid was made at a premium of USD 2.25 per ton for an early-May shipment of the product offered by a miner on Monday, although no deal was finalized. But the bid price was on the high side, sources said, because tradable levels in the secondary market were at a premium of only USD 2 per ton.
At Chinese ports, prices edged upward for low- and mid-grade materials amid tepid trading, while high-grade Iron Ore Carajas material continued to see good demand and prices rose by another
5-10 Yuan (USD0.75-1.49) per ton. Meanwhile, Chinese buyers were heard to make more inquiries for seaborne pellets during the day. The 62% Fe Iron Ore Index, fell by $1.05 per ton, while the daily 65% Fe Iron Ore Index was calculated flat to the index level on the previous publication day.
The price movements were based on the visible market activity detailed below, which was included in the index calculation according to the published methodology.
QUOTE OF THE DAY
“Increasing prices for 65% Fe Iron Ore Carajas at Chinese ports have been propping up seaborne prices [of the high grade material]. Capesize IOCJ cargoes could now trade at a premium of USD 1.50 per ton [based on 65% Fe Iron Ore Index],” a mill source In northern China said.
Report By: Parya AhmadPour
