Iron Ore Market in Brief: Seaborne prices rise to multi-year highs on firm demand
Seaborne iron ore prices witnessed a jump one more time on Friday May 10 to the historical highs amid strong demand in China and concerns over tightness of supply, mainly in Brazil.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE INDEX | $97.24 per tonne cfr Qingdao | +1.86 USD |
MB 62% FE PILBARA BLEND FINES INDEX | $95.92 per tonne cfr Qingdao | +1.86 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | $400.50 per tonne cfr Qingdao | +2.27 USD |
MB 58% FE PREMIUM INDEX | $86.60 per tonne cfr Qingdao | +0.10 USD |
MB 65% FE IRON ORE INDEX | $111.50 per tonne cfr Qingdao | +1.70 USD |
MB 62% FE CHINA PORT PRICE INDEX | 684 yuan per wet metric tonne | +2 Yuan |
KEY DRIVERS
China’s iron ore and steel futures all went up on Friday amid signs of an easing in trade tensions, as well as data showing that blast furnace operation rates remained high in China while iron ore port stockpiles continued to decline over the week, according to sources.
The falling port inventory indicated that Chinese mills were still restocking although keeping in- plant stocks at low levels, they added. The much lower iron ore shipment volumes from Brazil observed in April could lead to a relative supply shortage of low-alumina materials in the Chinese market in May-June, a trader in Shanghai said.
While Chinese steelmakers have been prioritizing smooth blast furnace production to maintain productivity when they are making a decent profit, low-alumina ore will continue to be in good demand, he added. A cargo of Brazilian Blend fines and another of Iron Ore Carajas, both high-Fe low-alumina products, have traded at historically high fixed price levels on platforms. At Chinese ports, trading slow down during Friday, but prices rose moderately.
QUOTE OF THE DAY
“The [intended rise in] impurities of Jimblebar fines could mean weaker prices for it later, while higher demand for low-alumina materials [will] offset its higher alumina [content],” a mill source in eastern China stated.
Report By: Parya Ahmad Pour
