Iron ore prices have continued to move up today, Monday, February 17, coming closer to the $90/mt level CFR last seen in late January. Firm demand for the raw material as mills have been gradually resuming normal work as well as supply concerns have contributed to the uptrend. Prices for iron ore with 62 percent Fe content have added $1.5/mt since Friday to $89.9/mt CFR, while fines with 65 percent Fe have gained $0.8/mt to $105.3/mt CFR, SteelOrbis has been informed.
Two batches of 170,000 mt of Pilbara fines each have been sold at the March index plus $2.1/mt and $2.15/mt extras. Also, about 170,000 mt of Brazilian fines with 65 percent Fe have changed hands at $105.3/mt CFR. Trading at ports has also been at good levels, traders have said, while prices have increased by RMB 10/mt ($1.5/mt).
At the same time, the largest Australian iron ore supplier Rio Tinto has cut its guidance for Pilbara shipments in 2020 by 6-9 million mt to 324-334 million mt as Tropical Cyclone Damien caused infrastructure damage. Last week, Brazilian miner Vale cut its January-March production guidance from 68-73 million mt to 63-68 million mt due to heavy rains.
Iron ore futures at Dalian Commodity Exchange have increased by RMB 16.5/mt ($2.4/mt) today to RMB 639.5/mt ($92.7/mt), reflecting better sentiments in the market.
