The uptrend in the iron ore market has continued with prices exceeding $95/mt CFR for the first time since mid-September. The main reason has been the ongoing restocking activity before the Chinese New Year holiday. Today, January 8, prices for iron ore fines with 62 percent Fe content have added $0.9/mt to $95.1/mt CFR, while ex-Brazil iron ore with 65 percent Fe have gained $0.4/mt to $107.7/mt CFR.
About 110,000 mt of Newman fines have been traded at the February index plus $1/mt. Another deal for 70,000 mt of Pilbara lumps have been done at the February index with a premium of $0.253/mt. A number of deals for 5,000-10,000 mt each have been reported at trading platforms for sales in national currency, mostly for mid-grade iron ore fines with 60-61 percent Fe content. Demand for iron ore has strengthened further, thought it was already healthy over the previous few days, the sources said.
Iron ore futures at Dalian Commodity Exchange have increased by RMB 14/mt ($2/mt) to RMB 679,5/mt ($98/mt) today, reflecting the positive sentiments prevailing in the market. According to a Reuters report citing Tianfeng Futures, steel mills in northern China will buy at least another 1.95 million mt of iron ore before the holiday.
Rebar futures prices at Shanghai Future Exchange have also posted strong gains today, adding RMB 48/mt ($7/mt) to RMB 3,617/mt ($524/mt).