The iron ore prices have been going up continuously this week and have reached the level last seen in early August. Prices for Australian iron ore fines with 62 percent Fe content have added $4.5/mt over the day to $98.5/ CFR. The weekly price increase has been $10.3/mt as Chinese customers will be out of the market on Friday due to Mid-Autumn festival. Brazilian iron ore fines with 65 percent Fe content have reached $105/mt CFR, $4/mt above Wednesday.
Expectations that customers will continue restocking next week and lower port stocks have supported spot iron ore prices. Iron ore futures at Dalian Commodity Exchange have closed at RMB 680/mt ($96/mt), RMB 24.5/mt ($3.4/mt) up compared to Wednesday. Moreover, “lower port inventories are important as they are bellow 120 millions mt,” a Chinese trader said.
Although tighter sintering restrictions in Tangshan on September 11-15 will affect iron ore consumption, most market participants have been expecting prices will stay strong until Chinese customers will finish restocking for October needs and only some traditional slight price retreat is possible in the near future which is usually following the sharp hike. Citigroup has forecasted that iron ore prices will fluctuate in the limited range and will end the year near to $95/mt CFR, while they will fall to $75/mt CFR in late 2020.