Iron ore prices were almost unchanged against yesterday’s closure.
Today, spot iron ore fines prices (Fe 62%) were at USD 55/MT, CFR China. Prices remained almost unchanged against yesterday’s closure at USD 55.3/MT CFR China. Yesterday, spot iron ore prices moved up by USD 2/MT.
Rising steel prices may support iron ore demand in China. Since last week steel prices have been strengthening, but steelmakers in China are still hesitant to buy iron ore.
Demand from the running Chinese mills is somewhat strengthening spot iron ore prices.
These mills are likely to increase their inventories levels. Buyers may restock the material at these levels before the cargoes become more expensive.
Whereas, some Chinese mills located in northern provinces are planning to reduce sinter levels being forced by the government’s anti-pollution standards. Since, sinter is the most pollution causing component in steel making, it is believed that it will be totally replaced by lumps or pellet in the coming future. Mills are asked to use high grade material like lump or pellet over sinter due to environmental regulations. This could be the reason of increase in iron ore lump premium in the past few weeks.
Global Iron ore Prices as on 04 Aug’15
| Particular | Material Type | Prices in USD/MT |
| Fe 62, Australia | Fines | 55 |
| Fe 62, Australia | PB Lump | 60 |
| Fe 65, Brazil | Fines | 57 |
| Fe 65, Brazil | Lump | 64 |
| Fe 64/63, South Africa | Lump | 68 |
| Fe 64.5, South Africa | Concentrate | 60 |
| Fe 65/64.5, South Africa | Fines | 57 |
| Fe 63/62, India | Fines | 55 |
| Fe 61/60, India | Fines | 49 |
| Fe 59/58, India | Fines | 45 |
CNF China prices
Source: SteelMint
Leave a Reply