Iron ore price rise accelerates as futures surge by daily maximum limit

Monday, 10 May 2021 17:16:17 (GMT+3)   |   Istanbul

Following sharp rises late last week, iron ore prices in China have continued to increase today, Monday, May 10. And the increase is even bigger than those seen previously. Speculative activity and record rises in the futures market have led to this.

Iron ore fines with 62 percent Fe have added $17/mt since Friday, reaching $229/mt CFR. A deal for 190,000 mt of Pilbara fines have been traded at the June index + $6.5/mt. No other deals have been reported at the trading platforms over the day.

Prices for ex-Brazil fines with 65 percent Fe have gone up to $260/mt CFR, up by $16.4/mt today.

Iron ore futures have closed at Dalian Commodity Exchange at RMB 1,326/mt ($206/mt) today, increasing by RMB 120.5/mt ($19/mt) or 10 percent compared to the previous trading day. The increase reached the maximum daily limit, and the market has been full of speculative trading, according to market sources.

On the other hand, iron ore prices have been supported by the continued sharp rises in steel prices in China. For instance, the average rebar price in China has surged by RMB 627/mt or $97/mt since Friday, according to SteelOrbis’ data.

Futures at Shanghai Future Exchange for both rebar and HRC have increased by almost six percent today, their maximum daily limit, to RMB 6,012/mt and RMB 6,335/mt, respectively.

$1 = RMB 6.4425

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