Global iron ore prices have again touched to a level of USD 53.2/MT, CFR China on 30 Mar’16. Starting Week 14, prices again tumbled down by USD 5/MT.
Prices are down as less transaction activity was seen and even after steel prices are up. Chinese steel prices have moved up as steel producers have increased their production due to recent gain in prices. Also, Shanghai rebar futures continued to rise and is at eight months high. Currently it is hovering at RMB 2.240/MT (USD 350/MT).
Few major transaction was done, among which Rio Tinto closed its 170,000 MT Fe 61% Pilbera blend fines, at USD 53.53/MT, CFR China. Although there was limited iron ore trade seen today, market participants are still optimistic about iron ore market that iron ore prices will again touch to a level of USD 60/MT, as seasonal construction activity still persist.
One of the market participant mentioned” Buying interest for iron ore is still healthy because of the strong steel market”.
Spot iron ore prices are currently range bound and it is expected that in April, prices will not be lower than in March, because mills are still making good profit.
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