Iron ore prices in China have increased today, Wednesday, June 24, the last working day this week before the Dragon Boat Festival amid firm demand and higher futures prices. However, concerns remain about finished steel demand in the country after the holiday.
The price for iron ore with 62 percent Fe content has increased by $2/mt today to $102.9/mt CFR, with the level slightly above the price seen last Friday. Prices for fines with 65 percent Fe have added $2.2/mt to $116.2/mt CFR.
A deal for 80,000 mt of 60.8 percent Fe Mac fines and 90,000 mt of 62.3 percent Fe Newman fines has been signed at the July index with extras of $0.3/mt and $1.7/mt for each product respectively. Also, 170,000 mt of Yandi fines with 57 percent Fe have been traded at the index with a discount of $3/mt. About 100,000 mt of Newman iron ore have been sold at the July index plus $2.15/mt.
Strong futures gains have provided support to spot prices as they reflect the balance in demand and supply in the market at the moment, sources have said. Iron ore futures at Dalian Commodity Exchange have closed at RMB 771/mt ($109.3/mt), up by RMB 15.5/mt ($2.2/mt) today.
At the same time, sentiment in the finished steel market has been far from positive as the long steel market is still impacted by weather conditions, while HRC prices in the local market have also posted declines (by RMB 15/mt today in the spot market). Rebar futures at Shanghai Future Exchange have increased today by RMB 6/mt ($0.85/mt) to RMB 3,620/mt ($513/mt).
