Iron ore prices in China have surged today, Friday, May 8, and so the total price increase for the current week has reached five percent. Stronger steel prices in the local market in China, the increase in futures prices, and reports of a further gradual improvement in steel production have led to the uptrend. Iron ore fines with 62 percent Fe have added $3.1/mt to $87.5/mt CFR today, while prices for iron ore with 65 percent Fe have increased by $2.8/mt to $106/mt CFR.
A deal for 90,000 mt of Newman fines with 62 percent Fe has been closed at $87.15/mt CFR for shipment in mid-June. About 55,000 mt of 58.5 percent Fe fines has been traded at $59.25/mt CFR for June delivery. “News about steel production strengthened sentiments,” a source said. In late April, the average daily crude steel output of large and medium-sized steel enterprises in China reached 2.012 million mt, up 3.1 percent compared to mid-April, as the CISA announced. Most sources believe that steel demand in the local market in May will be strong and that mills will boost production further. Rebar futures at Shanghai Future Exchange have closed RMB 30/mt ($4.2/mt) higher today at RMB 3,452/mt ($488/mt) compared to yesterday.
Iron ore futures at Dalian Commodity Exchange have added RMB 16/mt ($2.26/mt) to RMB 633/mt ($89.4/mt) today.
