Limited buying activity in China and strong supply from major exporters pushed iron ore prices down again on Tuesday, August 20. Prices of Australian iron ore fines with 62 percent Fe content have declined by $0.5/mt, coming to $88-88.5/mt CFR. Brazilian 65 percent Fe fines have lost $0.5/mt over a day and came to $96.5/mt CFR.
A deal for 170,000 mt fines with 65 percent Fe content, which had already been delivered to China, was closed at the COREX today, deal was based on September index plus $0.5/mt.
Slower demand and falling futures will lead to gradual iron ore price decrease later this week, market participants believe. Iron ore futures at the Dalian Commodity Exchange lost 1 percent, settling at RMB 616/mt.