Prices of ex-Australia iron ore of 62 percent Fe content for delivery to China's Qingdao port, which began last week at $56/mt CFR China, closed the week at $56.5/mt CFR. Market players were curious to see how the price trend would develop following the blast which occurred on August 12 at Tianjin port. Tianjin port is of critical importance particularly for iron ore shipments and the possibility of serious disruptions of shipments has been a focus of discussions. However, at the beginning of the current week, iron ore prices are still standing at $56.5/mt CFR China. Market players now view the situation more positively and do not anticipate any big disruption of iron ore shipments. Moreover, BHP Billiton has stated that their normal iron ore shipments have resumed at Tianjin, while Fortescue Metals Group said their deliveries have not been affected. It is reported that the iron ore berths at Tianjin are operating as normal and that port operations, including customs clearance, have also resumed.
Traders expect just minor fluctuations in iron ore prices in the coming period since no major disruption has been seen at Tianjin port, while they are also waiting to see the impact of the Chinese government's decision to limit steel production in some regions in the coming period against the backdrop of events such as the World Athletics Championship to be held in Beijing in late August and the commemoration in early September of China's victory over the Japanese in World War II.