Iron Ore Market in Brief: Prices fluctuate in the range with the marketers interest waiting for Pilbara Blend cargoes
Seaborne iron ore prices were generally fluctuating in the limit on Wednesday June 12, while the buyer’s interest lingered for Australia’s Pilbara Blend products.
Commodity | Price | Difference / MT |
MB 62% FE IRON ORE INDEX | USD 106.60 per tonne cfr Qingdao | -0.01 USD |
MB 62% FE PILBARA BLEND FINES INDEX | USD 105.40 per tonne cfr Qingdao | -0.01 USD |
MB 62% FE IRON ORE INDEX-LOW ALUMINA | USD 111.10 per tonne cfr Qingdao | +1.89 USD |
MB 58% FE PREMIUM INDEX | USD 98.21 per tonne cfr Qingdao | -0.06 USD |
MB 65% FE IRON ORE INDEX | USD 121per tonne cfr Qingdao | +1.40 USD |
MB 62% FE CHINA PORT PRICE INDEX | 796 yuan per wet metric tonne | +10 Yuan |
KEY DRIVERS
China’s iron ore futures opened even higher on Tuesday’s night session after closing the day session with a daily-trading-limit increase of 6%, but then largely fluctuated downward to end Wednesday just slightly above Tuesday’s closing price. Moreover the physical prices fell as much as 20 Yuan (USD2.90) per ton.
Spot iron ore trading at Chinese ports was still described as active on Wednesday morning, but cooled down in the afternoon. However, transaction prices were generally higher than a day earlier. In the seaborne market, a cargo of Brazilian Blend fines traded at a fixed price that was equivalent to a relatively steady premium on index-linked basis, while such premium for Pilbara Blend shipments continued to rise.
A joint cargo of Pilbara Blend fines and lump was heard to have traded at the July average of a 62% Fe index and its lump premium, plus a premium of USD3.50 per ton. Bids for July-loading Capesize cargoes of Pilbara Blends fines were made as high as a premium of USD3.50 per ton as well, compared with traded level of USD3-3.30 per ton a day earlier, according to sources. Daily MB 62% Fe Iron Ore Index fell USD0.01 per ton, while the daily MB 65% Fe Iron Ore Index increased USD1.40 per ton.
QUOTE OF THE DAY
“While some flat steel mills may be close to the break-even line, as mainly a long-steel producer we are still making a profit of about 500 Yuan per ton, making us less sensitive to iron ore costs,” a steelmaker source in eastern China said.
Report By: Javad Najafi
