Prices for iron ore have retreated today, Monday, July 8, slipping below the $110/mt CFR mark again, following a drop in futures prices. Weak fundamentals including reduced demand and higher inventories have offset the support which came mainly from positive expectations last week.
Iron ore fines with 62 percent Fe content have been quoted at $108.45/mt CFR, moving down by $1.85/mt from the previous trading day. Ex-Brazil fines with 65 percent Fe are priced at $124.65/mt CFR, declining by $1.7/mt today.
21 deals for a total of 280,700 mt of iron ore have been done at the Corex platform on July 8, signaling moderate demand. In particular, one deal for 90,000 mt of 62.2 percent Newman blended lumps was closed at the August 62 percent index + $0.205/mt, for delivery during the whole month of August.
“The costs were rising faster than finished steel since June… Iron ore futures are falling at the highest pace - by over three percent today. The seasonally weak July-August market may drive the price trend before the new round of policy change,” a trader noted. Also, iron ore port inventories have increased to 150 million mt in China, down from the general level of 120 million mt early this year and the lowest point of 100 million mt.
Steel prices in both local and export markets have also decreased today. Rebar prices are down by RMB 20/mt in the local market and down $5/mt in the export market, while billet prices dropped by RMB 42/mt in the local market and by $5/mt in the export market, according to SteelOrbis’ information.
