Iron ore prices have posted a sharp increase on Tuesday, August 18, supported by renewed interest in buying from Chinese mills and strong futures. As a result of more than $5/mt increase over the day, prices have reached the highest level since 2014.
Prices for iron ore fines with 62 percent Fe content have reached $127.8/mt CFR, taking into account deal price level, offers and bids, it is $5.7/mt above Monday’s level. Brazilian iron ore with 65 percent Fe has surged to $134.8/mt CFR, up by $6.1/mt over the day.
A contract for 170,000 mt of Pilbara fines (62 percent Fe) has been closed at $127.2/mt CFR during the day for September shipment, while Brazilian iron ore fines with 65 percent Fe have been sold at $134.8/mt CFR for 105,000 mt.
“Inquiries from mills are higher, they supported prices,” a source said. Taking into account that September-October is the peak season for steel consumption in China, steelmakers may accept higher raw material prices, having mainly positive outlook for coming months.
Moreover, futures have been on the rise, also supporting spot iron ore prices. January futures contract price for iron ore has been closed at Dalian Commodity Exchange at RMB 863/mt ($125.1/mt) on Tuesday, up by RMB 29/mt ($4.2/mt) over the day.
