Prices of ex-Australia iron ore with 62 percent Fe content for delivery to China’s Qingdao port have started the current week with an increase of $1.74/mt to $87.7-88.8/mt CFR China. Meanwhile, prices of ex-Brazil iron ore with 65 percent Fe content have risen by $0.5/mt at the start of the week to $97.51-98.51/mt CFR China. The ex-Australia ore prices had started last week with a slight decrease, rose slightly to $86.7-87.8/mt CFR China on Thursday, but failed to maintain their upward trend and ended up recording an overall decline of $0.74 /mt for the week in question.
Following the collapse of its waste dam in the Minas Gerais region, Brazilian iron ore giant Vale has now also been forced to halt production at its Timbopera mine in the same region, according to media reports. This means that annual global iron ore supply will likely decrease by an additional 12.8 million mt.
On the other hand, while Chinese raw steel producers have decreased their iron ore bookings due to the environmental protection measures in China, demand for ex-India pellets in China has increased recently. For the fiscal year 2018-19, overall Indian pellet exports are estimated at 8-9 million mt.
According to official data, iron ore imports in China, the biggest iron ore importer in the global market, decreased to 10-month low in February while the Australian economy is expected to be negatively impacted by the slowdown of iron ore demand and by the implementation of customs measures against ex-Australia coal in China. While buyers and sellers are still adopting a cautious stance towards new iron ore deals due to the fluctuating trend of prices, it is expected that price fluctuations will continue to be observed in the coming days.