Iron ore prices have kept moving up today, Tuesday, May 12, after a visible increase last week. Firm demand from Chinese customers and some worries about supply from Brazil have resulted in an increase of 2.3 percent in the daily iron ore price today. Iron ore with 62 percent Fe have added $2/mt compared to Monday to $89.5/mt CFR, while fines with 65 percent Fe have increased by $2.3/mt to $108.3/mt CFR.
A deal for 170,000 mt of Brazilian blended fines with 62 percent Fe has been done at $94.2/mt CFR, above the market expectations. A 50,000 mt contract for Pilbara lumps has been signed at the June index plus $0.1/mt. FMG’s fines with 56.5 percent Fe (188,000 mt) have been traded at $71.5/mt CFR.
Continuing bullish sentiment has been reflected in a further increase in future prices. Iron ore at Dalian Commodity Exchange has increased by RMB 6/mt ($0.85/mt) or one percent today to RMB 638/mt ($90/mt).
“The main driver is demand. Construction activity is at its peak,” a trader said. Rebar futures have kept going up. They increased by RMB 12/mt ($1.7/mt) to RMB 3,464/mt ($488.6/mt) at Shanghai Futures Exchange.
