Iron ore prices have decreased on Friday, October 11. Despite fluctuations over the week quotations have become lower compared to pre-holiday period. But still firm buying activity prevented prices from sharp fall. Prices for fines with 62 percent Fe content have reached $92.6/mt CFR, down $1.6/mt from Thursday and $0.8/mt compared to pre-holiday level. Brazilian fines with 65 percent Fe have been at $99.2/mt CFR, $0.8/mt below yesterday.
There have been two deals for fines with 62 percent Fe content at platforms during the day, both for 170,000 mt. Pilbara fines have changed hands at $92.25/mt CFR, while Brazilian blended fines have been traded at $92.9/mt CFR, both for November shipment. A deal for 120,000 mt of Brazilian fines with 65 percent Fe content has been at $99.5/mt CFR, shipment has been made two days ago.
Though overall sentiments in the market have been negative, the iron ore prices are expected to fluctuate in the limited range in case Chinese mills will keep increasing utilization rates. The recent announcement of production restrictions in Tangshan over October 10-30 will not lead to overall steel production slowdown in the country, market sources said. At the same time, a gradual fall in iron ore prices is possible due to the downtrend in the steel market.
