Global iron ore prices are assessed at USD 56/MT, CFR China on 04 Jul’16. Prices are up as there is a recovery in billet market.
Chinese domestic billet offers rose by RMB 40/MT in Tangshan. Today, prices for 150X150 mm billet was witnessed at RMB 2,100/MT (USD 323/MT). Shanghai rebar prices also moved up by RMB 60/MT.
Alongside, China Iron & Steel Association (CISA) had released a data regarding China’s steel inventories for first five months of 2016, showing steel inventories close to its lowest level since 2009, spot steel prices gear up.
CISA member mills made a combined profit of 8.74 billion yuan (USD 1.32 billion) during the period January-May. This is an increase of close to seven-and-a-half times of combined profits a year earlier.
According to market participants, “Trading volumes at Chinese ports remained sturdy. But, seaborne cargoes were not so optimistic as the premiums for 62% Fe fines remained unchanged”.
The spot iron ore market was still relatively quiet but saw firmer-priced transactions.
Trade-wise:
- Rio Tinto, via its tender sold 170,000 MT cargo of Fe 61% Pilbara blend fines at USD 55.5/MT, CFR China.
- The miner had sold a similar cargo at USD 53.5/MT CFR China last Friday.
- Vale offered a 90,000 MT shipment of Fe 65% Carajas iron ore fines at USD 60/MT per CFR China.
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