China: Iron ore Swaps tick up, trading in physical market remains stable

Tuesday, October 04,

Physical Iron ore market activities in China remained stable due to the National Holiday. A cargo of 63.5-63 Fe Indian fines was heard being traded at $148-150/MT.

Iron ore forward swap contracts rose on thin volumes in anticipation that spot prices will bounce back when China returns from a week-long public holiday on Friday.

Chinese steel mills normally restock on Iron ore after the National Day holiday but it may be difficult to know that at this point given the recent state-imposed production cutbacks. So in the short term, a slight increase in Iron ore supply may be seen.