Iron ore rises to over $190/mt CFR, pushed up by steel price hikes

Monday, 26 April 2021 17:05:11 (GMT+3)   |   Istanbul

Iron ore prices have posted a sharp hike today, Monday, April 26, amid the surge of steel product prices in the local Chinese market and, as a result, much higher futures prices. The supply volume of high grade ores has not been high, triggering higher prices.

Iron ore fines with 62 percent Fe content have added $7/mt from Friday, April 23, to $190.9/mt CFR. Moreover, the low-alumina content fines with the same Fe content (BRBF fines) have jumped even more. The latest deal at the GlobalOre platform for 170,000 mt of BRBF has been closed at $194.4/mt CFR for shipment during May 21-30. In addition, 170,000 mt of Pilbara fines have been traded at the June index + $6.9/mt.

Brazilian higher grade fines with 65 percent Fe have been priced at $226.3/mt CFR, up by $6.6/mt from April 23.

Trading of iron ore at Chinese ports has also been more active on Monday, sources have said, as some customers have been interested in purchases ahead of the Labor Day holiday (May 1-5).

But in general the greatest support for iron ore prices today has come from the steel market, where prices have reached new highs. Though the stoppage of sintering machines in Tangshan on April 25-27 will cut iron ore fines consumption, this has boosted rebar prices in China, which have a strong impact on raw material spot prices. The average rebar price in China has surged by RMB 106/mt ($16/mt) since Friday, according to SteelOrbis’ data.

On April 26, rebar futures have been closed at RMB 5,371/mt ($828/mt) at Shanghai Futures Exchange, up RMB 289/mt ($44.5/mt) or by 5.7 percent compared to April 19 and up by 2.34 percent compared to the previous trading day (April 25).

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