Chinese customers have increased purchases in the seaborne iron ore market on Tuesday, September 10, which have supported prices staying above $90/mt CFR. Australian prices for fines with 62 percent of Fe content have added $0.6/mt over the day, coming to $92.6/mt CFR, Brazilian fines with 65 Fe content have increased by $0.5/mt to $99.5/mt CFR.
About 830,000 mt of iron ore in total have been sold through the trading platforms on Tuesday. Two deals for Brazilian fines with 62 percent of Fe content (170,000 mt each) have been closed at $90.5/mt CFR and $91.25/mt CFR, both for mid-October shipment. The contract for similar material has been signed at $90.3/mt CFR yesterday.
Moreover, Brazilian iron ore 65 percent of Fe (about 230,000 mt in total) have been traded at $99.45/mt CFR and $99.6/mt CFR on Tuesday, cargoes have been already shipped in August. Two other deals have been signed for Australian Yandi fines with 58 Fe content and Pilbara fines 62 percent Fe, prices have been based on indexes.
Chinese customers have been restocking before the Mid-Autumn holiday. Sentiments in the local steel market have continued to improve gradually, supporting iron ore demand. Rebar futures at the Shanghai Future Exchange have added RMB 38/mt ($5.6/mt) over the day, reaching RMB 3,485/mt ($492/mt), while average rebar price in China has gained RMB 13/mt ($1.8/mt), according to SteelOrbis information.
$1 = RMB 7.08