Prices for import iron ore have continued to surge for the second day in a row, adding slightly more than $10/mt for benchmark grade fines. The very strong steel market in China and rising futures have supported the uptrend.
Iron ore fines with 62 percent Fe have been priced at $212/mt CFR today, Friday, May 7, up by $10.25/mt compared to yesterday’s level. A deal for Brazilian BRBF fines with alumina content has been done at $214.2/mt CFR. Pilbara fines with 62 percent Fe have changed hands at the June index + $6.15/mt. Both deals have been for 170,000 mt.
Ex-Brazil 65 percent Fe fines have reached a new high at $243.6/mt CFR, adding $8.6/mt today. A contract for 170,000 mt of such material has been closed at this level at the GlobalOre platform.
“Demand is strong, steel is on the rise, so why should iron ore not increase too?” a source said. Average rebar spot prices in China have gained RMB 323/mt ($50/mt) week on week to RMB 5,570/mt ($861/mt) ex-warehouse, according to SteelOrbis’ information.
As of May 7, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,678/mt ($878/mt), increasing by RMB 287/mt ($44.4/mt) or 5.3 percent since April 30.
Iron ore futures at Dalian Commodity Exchange have jumped by as much as 9.5 this week, reflecting strong fundamentals.