Though iron ore buying remained low on Tuesday, August 13, and prices have slipped again, e expected to keep around $90/mt CFR and are unlikely to fall sharply again in the near future as the steel market showed some signs of rebound. Prices of Australian iron ore fines with 62 percent Fe content have lost $1.5/mt coming to $89-90/mt CFR, while Brazilian 65 percent Fe fines have slipped by $1/mt to $97-99/mt CFR. Only one deal was concluded at GlobalOre platform for 170,000 mt of iron ore fines with 62 percent Fe content during the day, the price was based on September index of low alumina fines plus $2.1/mt.
Sentiments in the steel market improved following higher rebar futures at the Shanghai Future Exchange, where they increased by 2 percent on Tuesday, reaching RMB 3,674/mt.. Average rebar prices in the physical market went up by RMB 17/mt ($2.4/mt) since Monday, according to SteelOrbis information.
Ratings agency Fitch Solutions has raised 2019 iron ore price forecast to $90/mt CFR from $80/mt CFR mainly due to rally, seeing in Q2, which resulted in the year-to-date average price reached to $92/t, according to the agency. At the same time Fitch Solutions believes that prices have already peaked this year and will go down in H2. But “we do not expect a strong collapse. Economic stimulus provided by the Chinese government to stabilise growth will keep steel production strong in 2019 and 2020, especially with the re-escalation of the trade war with the US, boosting demand for iron-ore,” Fitch reported.
