Iron ore prices have as expected increased on Tuesday, October 8, the first working day after the week-long holiday in China. Market sources have been waiting for some price increase as mills will be interested in restocking after the break and as there have been rumors in the market that Chinese steel production will rebound.
Prices for 62 percent Fe iron ore fines have inched up by $0.4/mt to $93.6/mt CFR. Brazilian fines with 65 percent Fe content have increased to $100.4/mt CFR. A deal for 170,000 mt of Brazilian blended fines (Fe content of 62 percent) has been concluded at $93.5/mt CFR for shipment on November 2-11. A Rio Tinto tender for Pilbara fines with 61 percent Fe content has been closed at $92.53/mt CFR, also for November shipment. This level is equivalent to $93.6/mt CFR for fines with 62 percent Fe content.
Market sources have said that overall trading activity has not been high as it is just the first working day after the holiday and overall expectations are positive at least for this week. However, on October 8, rebar futures at the Shanghai Future Exchange have lost RMB 81/mt ($11/mt) to RMB 3,404/mt ($476/mt), reflecting weak sentiments as higher steel output may put additional pressure on the local market. If the downtrend in the steel market persists until the end of the week, iron ore prices will also be under pressure.
