Iron ore prices in China have reached their peak level for the year so far today, July 8, as firm demand and increasing prices in the steel market have supported sentiments in the raw material segment. Moreover, surging futures prices have been one of the main reasons behind today’s hike.
Iron ore with 62 percent Fe content are priced at $105.8/mt CFR, up by $2.8/mt today, though offers and the tradable level, taking into account futures, are up to $106.4/mt CFR. The price for fines with 65 percent Fe is at $119.2/mt CFR, indicating an increase by $3.2/mt today.
A contract for 170,000 mt of Pilbara fines with 61 percent Fe has been closed at $104.1/mt CFR today. In addition, 80,000 mt of Newman lumps have been sold with a premium $0.113/mt.
Iron ore futures at Dalian Commodity Exchange have surged by RMB 24/mt ($3.4/mt) to RMB 788/mt on July 8, indicating bullish sentiments in the raw material market.
Trading activity in the Chinese longs steel market has posted a visible increase today, though it has been unusual for the offseason. Average rebar prices in China have increased by RMB 30/mt ($4.3/mt) over the day to RMB 3,763/mt. At the same time, rebar futures at Shanghai Future Exchange have been closed with a RMB 66/mt ($9.4/mt) increase today, reaching RMB 3,702/mt.