Spot iron ore prices rebounded by 28% to USD 56.3/MT CFR China after recording 10-year low in early July.
Spot iron ore prices are getting firm since last week as spot steel prices strengthen. It is anticipated that owing to event scheduled on 3rd September (70th World War 2 Anniversary) in Beijing, mills will be restricted for production and there’ll be force shut down in-order to ensure clean air during commemoration. The control will start from 20th August onwards.
The inventory at major Chinese ports is declining continuously. The upcoming key event in China has resulted to an increase in spot iron ore prices as the mills are producing more steel. Chinese steel mills are currently restocking sufficient inventories of raw material before the closure. Hence, the Chinese market is supporting the spot iron ore prices for short term.
Spot iron ore prices rebounded to 28% from its new 10-year low at USD 44.1/MT CFR China, on 8th of July.
In addition, world’s second largest iron ore producer Rio Tinto plans to open its Silvergrass iron ore mines in Pilbara in 2016. Last month company had announced to cut its production for second half of Australian FY16 by 10 MnT and expected to produce 340 MnT in FY16. Silvergrass project had been put off three times in the past two years. However, the company expects that Silvergrass project will lift the company’s export figures to 360 MnT instead of 350 MnT in 2016.
Global iron ore Prices
Spot iron ore fines Fe 62 prices were last seen at USD 56.3/MT, CFR China.
|
Particular |
Material Type |
Prices in USD/MT |
| Fe 62, Australia | Fines | 56.3 |
| Fe 62, Australia | PB Lump | 61 |
| Fe 65, Brazil | Fines | 58 |
| Fe 65, Brazil | Lump | 65 |
| Fe 64/63, South Africa | Lump | 69 |
| Fe 64.5, South Africa | Concentrate | 61 |
| Fe 65/64.5, South Africa | Fines | 57 |
| Fe 63/62, India | Fines | 55 |
| Fe 61/60, India | Fines | 52 |
| Fe 59/58, India | Fines | 46 |
CNF China prices
Source: SteelMint
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