Iron Ore Market in Brief: Prices were rangebound amongst the upcoming fluctuations
Physical iron ore prices were rangebound on Thursday May 6, while the futures market experienced rough trading.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE INDEX | USD 100.60 per tonne CFR Qingdao | +0.22 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 99.40 per tonne CFR Qingdao | +0.54 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 104.04 per tonne CFR Qingdao | -0.46 USD |
MB 58% FE PREMIUM INDEX | USD 90.86 per tonne CFR Qingdao | -3.56 USD |
MB 65% FE IRON ORE INDEX | USD 115.30 per tonne CFR Qingdao | -0.10 USD |
MB 62% FE CHINA PORT PRICE INDEX | 760 yuan per wet metric tonne | -3 Yuan |
KEY DRIVERS
China’s steel and iron ore futures all retreated on Thursday morning before rebounding through the rest of the day to recover most of the losses. The benchmark iron ore contract ended 0.8% lower than lower than the previous day’s settlement level. The country’s spot rebar and hot-rolled coil prices also fell 10-30 Yuan (USD1.45-4.34) per ton on Thursday.
Spot iron ore transaction prices at Chinese ports dipped in the morning, but they strengthened in the afternoon. Prices remain supported by the relatively low stockpiles, especially for lower grades, according to sources. Iron ore inventories at 45 major Chinese ports totaled 121.59 million tons as of Thursday, down 2.39 million tons from last Friday and 21.29 million tons lower than at the start of 2019, according to a local data provider.
Two index-linked seaborne cargoes of low-alumina Yandi fines in the low-grade sector traded on a platform in the afternoon at premiums above USD 2 per ton. A Capesize cargo of Pilbara Blend fines, to be loaded around the end of June to the beginning of July, was heard traded in the secondary market at a premium of USD 2.10 per ton based on the June average of a 62% Fe index.
Daily MB 62% Fe Iron Ore Index rose USD 0.22 per ton, while the daily MB 65% Fe Iron Ore Index decreased USD0.10 per ton.
QUOTE OF THE DAY
“With steel prices weakening, mills are making less profits for rebar and hot-rolled coil, and are even on the break-even line for cold-rolled coil. So more procurement people are looking for cheaper alternatives for costly materials, [such as] Brazilian Blend fines. However, prices for such products remained backed by limited supply,” a trader in Shanghai said.
Report By: Encieh Arbabi
