Prices for iron ore have decreased on Thursday, September 5, following the rise recorded during the previous day. Insufficient demand has put pressure on iron ore prices, but firm steel prices have prevented prices from dropping sharply. Australian fines with 62 percent Fe content have been offered at $90/mt CFR, down $1.25/mt from yesterday, while Brazilian fines with 62 percent Fe content have lost $1.5/mt coming to $96.5/mt CFR.
There has been only one deal registered at trading platform GlobalOre on Thursday. Fines with 65 percent Fe content have been sold at $96.75/mt CFR: the material had been shipped in August. Market sources have said that demand for Brazilian fines has been improving, while a number of mills have been looking for BRBF fines to increase productivity during the restrictions.
Although iron ore futures at Dalian Commodity Exchange have gained on Thursday with settled prices at RMB 654.5/mt ($92/mt), up by RMB 15/mt or $2/mt during the day, and this has given some small support to spot prices. Trading volumes at the exchange have increased as more customers have been trying to hedge risks in current market conditions.
At the same time, steel prices have posted a further slight increase due to expected lower production this month and hopes of improved demand. Rebar futures at Shanghai Future Exchange have added RMB 35/mt ($5/mt) on Thursday.
A lack of optimism in the iron ore market in China over the week has been reflected in local iron ore prices. Quotations of 66 percent iron ore concentrate in Tangshan stand at RMB 736/mt ($104/mt), the same as last week, but prices of the same material in Beipiao, Liaoning, have lost RMB 55/mt ($8/mt) coming to RMB 678/mt ($96/mt), both including VAT.
