The downward trend resumed in the iron ore market on Monday, August 26, after the US and China announced additional tariffs of 5-10 percent on each other’s goods last Friday. Prices for Australian iron ore fines with 62 percent Fe content have lost $4.5/mt, almost the same margin by which prices increased on Friday, falling to $84.5/mt CFR. Prices for Brazilian 65 percent Fe content have softened by $3.5/mt to $93.5/mt CFR on Monday.
Brazilian iron ore fines with 65 percent of Fe content have remained the most popular in the overseas market. Overall trading activity has still been at good level, market sources say, and sentiments still bearish, in line with market expectations.
The expected easing of production restrictions in Tangshan in September together with less confidence in the market has brought steel prices down in the local Chinese market. Average billet prices in China have lost RMB 45/mt ($6/mt) since Friday, coming to RMB 3,438/mt ($487/mt), according to SteelOrbis’ information. Rebar futures at Shanghai Future Exchange have declined by 1.8 percent to RMB 3,372/mt ($478/mt) on Monday.
Deals for iron ore in the overseas market on August 26
Trading platform |
Iron ore grade |
Volume |
Shipment |
Price |
GlobalOre |
Fines 65 percent Fe content |
170,000 mt |
August 20-29 |
Oct. index + $0.75/mt |
GlobalOre |
Fines 65 percent Fe content |
170,000 mt |
September 20-29 |
Nov. index + $0.75/mt |
GlobalOre |
Fines 65 percent Fe content |
170,000 mt |
October 20-29 |
Dec. index + $0.75/mt |
COREX |
Fines 65 percent Fe content |
170,000 mt |
August 10-19 |
Oct. index + $0.8/mt |
COREX |
Fines 65 percent Fe content |
170,000 mt |
September 10-19 |
Nov. index + $0.8/mt |
COREX |
Fines 65 percent Fe content |
170,000 mt |
October 10-19 |
Dec. index + $0.8/mt |
COREX |
Fines 62 percent Fe content |
170,000 mt |
September 21-30 |
Oct. index + $1.6/mt |
