Iron ore prices in China have increased on Monday, November 18 as the steel market has been stronger owing to fresh government support. Prices for fines with 62 percent content have added $0.6/mt since Friday, reaching $84.5/mt CFR, while Brazilian iron ore with 65 percent Fe have gained $0.4/mt to $96.2/mt CFR.
A deal for 170,000 mt of Brazilian blended fines with about 62 percent Fe content has been done at $85.2/mt CFR for December shipment, while there were no contracts at trading platforms on Friday. Trading activity at ports has also increased, with prices adding about RMB 5/mt ($0.7/mt).
One of the major drivers of the recent iron ore price increase has been the better sentiment in the finished steel market as China's central bank has initiated the second phase of a targeted reserve requirement ratio (RRR) cut for some city commercial banks and implemented a medium-term lending facility (MLF) to inject liquidity into the market. Rebar futures at Shanghai Future Exchange have increased by RMB 21/mt ($3/mt) to RMB 3,556/mt ($508/mt) on Monday.
Iron ore futures at Dalian Commodity Exchange have closed RMB 3.5/mt ($0.5/mt) higher at RMB 614/mt ($87.7/mt).