Iron Ore Market in Brief: Seaborne prices grew over USD 105 per ton
Iron ore prices progressed with their increasing trend on Wednesday May 22 with the MB 62% Fe Iron Ore Index rising to more than $105 per ton CFR China.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE INDEX | USD 105.78 per tonne cfr Qingdao | +3.75 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 103.97 per tonne cfr Qingdao | +3.75 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 108.26 per tonne cfr Qingdao | +2.50 USD |
MB 58% FE PREMIUM INDEX | USD 95.20 per tonne cfr Qingdao | +2.32 USD |
MB 65% FE IRON ORE INDEX | USD 119.20 per tonne cfr Qingdao | +2.50 USD |
MB 62% FE CHINA PORT PRICE INDEX | 737 yuan per wet metric tonne | +16 Yuan |
KEY DRIVERS
China’s iron ore futures maintained their upswing during trading on May 22, with the benchmark contract ending 3.4% higher than the settlement level a day earlier. This was based on relatively tight seaborne iron ore supply and robust demand from Chinese steelmakers, whose profit margins were improving, as well as the backwardation of the futures price compared with physical prices at Chinese ports, according to sources.
The East Asian country’s spot prices for rebar and hot-rolled coil rose by 10-30 Yuan (USD1.44-4.33) per ton during the day. Portside iron ore trading slowed down compared with Tuesday, but transaction prices picked up notably. Seaborne iron ore cargoes also showed active offers and bids in the afternoon on trading platforms, although only two deals were clinched, both for Mining Area C fines.
There were likely to be reduced shipment volumes of Brazilian Blend fines and Iron Ore Carajas in June and probably beyond. Daily MB 62% Fe Iron Ore Index rose by USD 3.75 per ton on Wednesday while the 65% Fe Iron Ore Index was up by USD 2.50 per ton from the previous day.
QUOTE OF THE DAY
“While no new factors are confirmed to lead to tighter supply of iron ore, the demand side seems to be doing pretty well, with the steel market not yet showing signs of slipping into a low season,” a mill source in northern China said.
Report By: Mohammad Reza Barakchian
