Having closed last week with a downward trend, prices of ex-Australia iron ore of 62 percent Fe content for delivery to China’s Qingdao port increased by $0.2/mt as of today, Monday, June 25, as compared to the closing price at the end of last week, starting the current week at $64.80-65.90/mt CFR China. Additionally, as of June 18, inventory of iron ore at 33 major Chinese ports amounted to 132.04 million mt, down 1.21 percent compared to the inventory levels recorded on June 11, as announced by China's Xinhua News Agency.
Having started last week with a sideways trend due to the national holiday in China, global iron prices declined sharply on Tuesday, June 19. As the US and China increased import tariffs bilaterally, trade tensions between two countries negatively impacted steel markets. After Trump administration placed a 25 percent tariff on $50 billion of goods from China and China announced its plans for 25 percent tariffs on US goods worth $50 billion within minutes, the US president Donald Trump again threatened to impose an additional 10 percent tariffs on Chinese goods worth $200 billion, as announced in a statement published by the White House, on Tuesday, June 19.
This situation has reflected the Asian markets, steel futures contacts and spot market prices. While iron ore futures contracts have been sold out quickly, iron ore prices in spot market have decreased during the past week. However, on Wednesday, June 20, high quality iron ore prices increased contrary to the overall downward movement of global iron ore prices. Subsequently, global iron ore prices recovered slightly in the last day of the week, following their loses. As a result, global iron ore prices decreased by 1.33 percent in the given week.
The upward movement of iron ore futures prices, which has started this week, has positively impacted global iron ore prices. In the coming period, global steel market is expected to watch the trade war between the US and China and sharp statements from both sides are likely to impact iron ore prices both in futures and spot markets. Therefore, global iron ore prices may decrease further in the coming days.