Iron ore price for Fe 62% fines have been increasing since last week. Benchmark index is assessed at USD 74.15/MT CFR, China today (18th Dec’17). It closed at USD 71.5/MT CFR, China last week on Friday 15th Dec’17. It has increased by USD 2.65/MT D-o-D basis.
A month ago, the price was around USD 63/MT, CFR China and around USD 69/MT, CFR a week ago.
Buying interest for high grade seaborne iron ore has increased, as steel makers are restocking ahead of an expected recovery in winter cutbacks, so that they resume output after Mar’18. According to the market sources, Steel makers need to maintain a higher stock level than usual ahead of extreme weather condition in China. This has resulted in increased restocking activities.
Chinese steel maker preferred high grade iron ore material amid production cuts announced by Chinese govt to slash output between mid-November and mid-March to reduce air pollution.
Steel prices in China also moved up – The rise in iron ore prices is further lifting up the prices of steel. The eastern China rebar prices rose to YuaYn 4,770-4,800/MT (ex-works) today against last week’s closure of Yuan 4,750-4,800/MT (ex-works).
The Dalian iron ore futures had climbed 7.1 % to Yuan 536/MT , further pushing the rebar contract on Shanghai Futures Exchange by 1.8% to Yuan 3,874/MT.
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