Iron ore jumps above $90/mt CFR amid increased buying, better sentiment

Monday, 02 September 2019 17:07:11 (GMT+3)   |   Istanbul
       

Iron ore prices have posted a sharp rise today, Monday, September 2, on the back of restocking by buyers and expectations of high consumption in China in the near future amid the easing of production restrictions in Tangshan. Prices for Australian iron ore fines with 62 percent of Fe content have jumped by $7.5/mt since last Friday to $90.5/mt CFR. Brazilian Fe 65 percent fines have been priced at $99/mt CFR, $7/mt higher compared to the end of last week.,

There have been a number of deals signed today at trading platforms for an aggregate of about 620,000 mt of iron ore. In one of the deals in question, material with 61 percent Fe content has been sold during the day at a fixed price of $89.5/mt CFR. Weaker restrictions in Tangshan for September have also added to expectations that demand will remain at more or less high levels in the near future.

Spot iron ore prices have been supported by higher futures at the Dalian Commodity Exchange, which have increased by four percent to RMB 618/mt ($87/mt) since Friday. At the same time, rebar futures at the Shanghai Future Exchange gained RMB by 51/mt ($7/mt).

Despite the recent surge, negative sentiments are still present in the market. Market sources believe that this rebound has just been a reaction to the long-standing decline. However, Shagang Group has cut rebar prices for local sales in September 1-10 by RMB 250/mt or $35/mt, signaling that a steel demand recovery is not expected in the first half of September.

Deals for iron ore in the overseas market on September 2:

Trading platform

Iron ore grade

Volume

Shipment

Price

COREX

PB Fines 62 percent Fe content

170,000 mt

October 6-15

Oct. index + $3.8/mt

COREX

PB Fines 61 percent Fe content

170,000 mt

 

 $89.5/mt CFR

COREX

Brazilian Fines 62 percent Fe content

170,000 mt

September 27 - October 10

Oct. index + $1.6/mt

GlobalOre

Mac Fines 61 percent Fe content

110,000 mt

October 1-10

Oct. index + $0.35/mt

 


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