Iron ore prices have declined again on Monday, August 19, as demand has become slacker, as tighter steel production restrictions have been announced in Tangshan and since overall sentiment is negative. Prices of Australian iron ore fines with 62 percent Fe content have lost $0.75/mt, coming to $88.5-89/mt CFR. Brazilian 65 percent Fe fines have dropped by $1/mt to $97/mt CFR.
Three deals were reported on the trading platforms, two of which were for higher grade fines with 65 percent Fe content. Deal prices were fixed at $97/mt CFR and 97.2/mt CFR, SteelOrbis was informed.
Steelmakers in the center of China’s top steelmaking hub of Tangshan in Hebei Province have been ordered to step up their production controls on August 18-21, with most mills having to cut their sintering capacity utilization rates to not higher than 50 percent. This news has led to a worsening of sentiments in the raw material segment due to expectations of reduced iron ore consumption in the near future.
Though iron ore futures prices at Dalian Commodity Exchange have posted minor changes since Friday, the closing contract price for today was RMB 617/mt, RMB 6/mt lower than on August 16.
Deals for iron ore in the overseas market on August 19
Trading platform |
Iron ore grade |
Volume |
Shipment |
Price
|
COREX |
Fines 62 percent Fe content |
170,000 mt |
September 7-16 |
Sep. index + $1.3/mt |
GlobalOre |
Fines 65 percent Fe content |
80,000 mt |
July 27 |
$97/mt CFR |
GlobalOre |
Fines 65 percent Fe content |
80,000 mt |
August 5 |
$97.2/mt CFR |
