Iron ore prices have continued moving up on Friday, January 3, as demand from Chinese mills and traders has remained good for medium and high-grade fines, while purchases from ports have also been high. Prices for 62 percent Fe content iron ore fines have increased by $0.8/mt over the day to $93.9/mt CFR, while the hike in higher grade fines has been bigger. Prices for 65 percent Fe iron ore have added $1.3/mt to $106.5/mt CFR.
A deal for 170,000 mt of Pilbara fines has been done at the February index plus $1.25/mt, while Mac fines (with less than 61 percent Fe) have changed hands at the February index with a $2.6/mt discount. Moreover, there have been reports of two contracts for 170,000 mt each for Carajas fines with 65 percent Fe at $106.3/mt CFR and $106.8/mt CFR. Positive sentiments have prevailed in the market even despite the continued weak demand for longs and fresh restrictions on production in Tangshan. Iron ore futures at the Dalian Commodity Exchange have risen by RMB 10.5/mt ($1.5/mt) today to RMB 666/mt ($96/mt), while rebar futures at the Shanghai Future Exchange have lost RMB 20/mt ($2.9/mt) over the day to RMB 3,543/mt ($513/mt). Most market sources believe that iron ore prices will remain high until Chinese customers finish restocking for the post-holiday period.