Iron ore trading has improved on Monday, November 25, while prices in the steel market in China have kept moving up, supporting iron ore quotations. Higher grade iron ore fines are still the most popular as mills’ margins have increased and steelmakers have been trying to increase production efficiency.
Iron ore fines with 62 percent Fe content have added $2.6/mt since Friday, November 22, to $90.6/mt CFR. Brazilian fines with 65 percent Fe have been available at $102.8/mt CFR, up $2.8/mt on Monday compared to Friday.
A deal for about 80,000 mt of Brazilian fines with 65 percent Fe content has been done at GlobalOre at $102.85/mt CFR for shipment in the second half of November. Mills are still more interested more in purchases of higher grade iron ore, seeing better margins and tighter steel production restrictions.
Moreover, trading at Chinese ports has also improved with prices adding about RMB 10/mt ($1.4/mt). Iron ore futures at Dalian Commodity Exchange have surged by RMB 21.5/mt ($3/mt) to RMB 665.5/mt ($94.5/mt) on Monday due to overall positive sentiments in the market. Moreover, steel prices in China are still moving up. Average rebar spot prices in China have increased by RMB 44/mt ($6.2/mt) to RMB 4,347/mt ($617/mt) ex-warehouse on Monday.
