Iron ore prices have expectedly dropped back down due to weaker demand and short-term production restrictions in Tangshan. Today, Tuesday, September 3, the price for Australian fines with 62 percent Fe content has lost $1.25/mt and has come to $89.25/mt CFR, while Brazilian Fe 65 percent iron ore has gone down by $1/mt to $97/mt CFR.
At the same time, a deal for low-alumina Brazilian fines with Fe 62 percent has been done at $86.8/mt CFR at GlobalOre, indicating much lower demand and falling bids in the market.
Apart from the overall decline in demand, Tangshan authorities have announced strong short-term restrictions for September 2-7 due to a worsening of weather conditions. As a result, most local producers will have to cut utilization rates to 50 percent and some of them will have to stop operations. As SteelOrbis reported previously, according to the output restriction plan for most of September, producers in Tangshan were ordered to cut capacity rates by just 20-30 percent.
Deals for iron ore in the overseas market on September 3
|
Trading platform |
Iron ore grade |
Volume |
Shipment |
Price |
|
COREX |
PB Fines 62 percent Fe content |
170,000 mt |
October 7-16 |
Oct. index + $4/mt |
|
GlobalOre |
Newman Fines 62 percent Fe content |
100,000 mt |
October 1-10 |
$88.15/mt CFR |
|
GlobalOre |
Brazilian Fines 62 percent Fe content |
170,000 mt |
September 30 - October 9 |
$86.8/mt CFR |