Iron ore prices have improved on Tuesday, February 4, as trading has resumed after the long holiday and there have been deals at higher levels compared to yesterday’s indicative prices. Futures prices for steel products have also rebounded, supporting the market after the previous sharp drop. Prices for iron ore with 62 percent Fe content have added $3.1/mt today to $82.6/mt CFR. Prices of Brazilian iron ore fines with 65 percent Fe have increased by $4.6/mt to $99.6/mt CFR on the same day.
There have been five deals done at the trading platforms today for a total volume of 690,000 mt of iron ore. A contract for 170,000 mt of Pilbara fines with 62 percent Fe content has been signed at $82.6/mt CFR for late February-early March shipment. Moreover, the same volume of Brazilian blended fines has been traded at $85.1/mt CFR for shipment over March 10-19, while this has been excluded from the reference price due to its higher quality. A deal for 170,000 mt of ex-Brazil iron ore fines with 65 percent Fe has been done at $99.6/mt CFR. About 100,000 mt of Yandi fines with about 58 percent Fe have been sold at the March index with a $4.9/mt discount. The premium in the transaction of 80,000 mt of Newman lumps was $0.267/mt.
“The coronavirus has an impact, but trading improved,” a trader said. Iron ore futures at Dalian Commodity Exchange have declined further, down by 2.5 percent today to RMB 591/mt ($86/mt), after yesterday's eight percent drop, reflecting still bearish sentiments in the iron ore market.
At the same time, rebar futures at Shanghai Future Exchange have increased by RMB 53/mt ($7.7/mt) to RMB 3,312/mt ($480/mt) as production is going to decline together with consumption. Tangshan has issued a second-level pollution alert again today.
