Iron ore prices improved on Friday, August 16, amid higher purchasing activity by Chinese customers. Prices have been fluctuating within a small range this week after the sharp drop registered last week.
Prices of Australian iron ore fines with 62 percent Fe content have been at $89.5/mt CFR today, $0.75/mt up from yesterday’s level, but still $1.5/mt below last Friday, according to SteelOrbis’ information. Brazilian 65 percent Fe fines have remained at $98/mt CFR, stable compared to yesterday.
There were five deals done on trading platforms during the course of Friday, with the details given in the table below. Customers have been replenishing stocks for September as purchasing activity was extremely low in the past few weeks. One of the deals on the platforms for fines with 62 percent of Fe content was done at $89.5/mt CFR, indicating the level the market is at now.
Nevertheless, most market participants do not expect iron ore prices to become much stronger in the near future. “Without support from the steel market iron ore will not rise. It will fluctuate close to $90/mt CFR for months,” one trader said. Iron ore futures at the Dalian Commodity Exchange lost RMB 3/mt on Friday, declining to RMB 623/mt.
Deals for iron ore in the overseas market on August 16
Trading platform |
Iron ore grade |
Volume |
Shipment |
Price
|
COREX |
Fines 61 percent Fe content |
190,000 mt |
8-19 September |
$88.5/mt CFR |
COREX |
PB fines 62 percent Fe content |
170,000 mt |
3-12 September |
Sep. index + $2.85/mt |
COREX |
n/a |
170,000 mt |
27 July |
Sep. index for 65 percent Fe content fines + $0.45/mt |
GlobalOre |
Fines 62 percent Fe content |
170,000 mt |
5-14 September |
$89.5/mt CFR |
GlobalOre |
Newman fines 62-63 Fe content |
90,000 mt |
1-10 September |
Sep. index + $1.85/mt |
