Iron ore prices have increased on October 9 amid restocking activities after the long holidays and better expectation for steel demand in October.
Iron ore with 62 percent Fe has gained $2.3/mt since the beginning of the holidays on September 30, to $125.3/mt CFR today. At the same time, ex-Brazil iron ore fines with 62 percent Fe have added $3.65/mt to $138.05/mt CFR.
Higher trading amid restocking after the holidays has supported prices. A deal for 170,000 mt of Pilbara fines has been done at the November index plus $4.3/mt. 120,000 mt of Brazilian 65 percent Fe iron ore have been sold at $138.05/mt CFR. Demand has improved at Chinese ports too.
Together with the demand improvement, the worries regarding supply have eased with Vale resuming operations at its Viga complex in early October. Moreover, it is planning the expiation of facilities at the port of Shulanghu.
Better expectations in the steel market in China owing to the improvement of construction has also provided support for iron ore prices. Average rebar spot prices in China have gained RMB 46/mt ($6.8/mt) week on week, while rebar futures at the Shanghai Futures Exchange have added RMB 73mt ($11/mt) or 2.25 percent since September 30 to RMB 3,633/mt ($536/mt).
Iron ore futures at Dalian Commodity Exchange have gained to RMB 830/mt, up by 2.6 percent from the September 30 closing price level.