Iron ore rebounds again despite weak demand outlook

Tuesday, 15 October 2019 17:06:24 (GMT+3)   |   Istanbul
       

Iron ore prices have inched up in some deals on Tuesday, October 15, though overall sentiments have been still weak in the market in both steel and raw materials segments. Prices for fines with 62 percent Fe content have added $1/mt, reaching $92/mt CFR, while Brazilian fines with 65 percent Fe have increased by the same amount to $98.5/mt CFR.

Rio Tinto has closed a tender for 100,000 mt of Pilbara blend fines with 61 percent of Fe content at $90.56/mt CFR for shipment during November 2-11. This price corresponds to $92.04/mt CFR for fines with 62 Fe content, SteelOrbis learned. Moreover, a deal for 200,000 mt of Brazilian Fe 65 percent fines has been closed at GlobalOre at $99/mt CFR. A contact for Brazilian fines with Fe 62 percent has been done based on January index.

While suppliers have been able to sign contracts at higher levels, overall sentiments have stayed weak. Prices for Australian Fe 62 percent fines at Chinese ports have inched down by RMB 5-10/mt ($0.7-1.4/mt) during the day.

Moreover, rebar futures at the Shanghai Future Exchange have lost RMB 57/mt ($8/mt) on Tuesday as demand has softened.

Iron ore consumption will be lower in the near future, most market sources believe. Tangshan authorities have issued a second-level smog alert today, under which mills at B and C categories will have to halt sintering production and cut blast furnaces capacities by more than 50 percent.


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