Iron ore prices are still supported by firm demand from Chinese customers, who have been replenishing stocks for the period after Chinese New Year holiday. Moreover, some delays in supply from Australia are possible due to the approaching cyclone Blake. Prices for iron ore with 62 percent Fe content are stable at $94.2/mt CFR today, Tuesday, January 7, while iron ore fines with 65 percent Fe have gained $0.7/mt to $107.3/mt CFR, both compared to yesterday.
Higher prices for higher grade material have been fixed in fresh deals. About 100,000 mt of Brazilian Carajas fines with Fe content of 65 percent have been sold at $107.3/mt CFR at COREX today. Moreover, at GlobalOre 170,000 mt of Pilbara fines have been traded at the February index plus $1.35/mt. Another deal for Australian Jimblebar fines (Fe content of 61 percent on average) has been closed at the March index with a discount of $9.55/mt.
Trading at ports has been active on Tuesday. A deal for 20,000 mt of Pilbara fines (Fe content of 61.55 percent) has been signed at RMB 678/mt ($97.3/mt) CFR Qingdao port at COREX.
The Tangshan government has announced the cancelation of short-term restriction for steel production as air quality started to improve. Moreover, the overall situation in the longs steel market has become slightly better. Rebar futures at Shanghai Future Exchange have added RMB 25/mt ($3.6/mt) today to RMB 3,574/mt ($518/mt).
At the same time, cyclone Blake is expected hit the eastern Pilbara region on January 6-7, according to the Bureau of Meteorology of Australia. The cyclone could intensify into a category two. Most miners and ports are prepared and no significant impact is expected, but some delays in shipments are possible though they will be much smaller than when cyclone Veronica hit Australia in April 2019.