Global iron ore prices are assessed at USD 81/MT, CFR China as trading activity picked up. In addition, the iron ore and steel futures also increased today. Prices moved up by USD 1.4/MT in a day as it was assessed at USD 79.8/MT, CFR China on 14 Dec’16.
Prices remained firm as world’s major miners offered handful of cargoes and port activities remained inactive. Higher grade ore continue to remain favourable over lower grade iron ore for the Chinese steelmakers.
Spot billet prices in Tangshan rebound by RMB 20/MT today, but spot rebar prices lost by the same amount.
In addition, steelmakers continue to increase their profit margins and there is optimism for support in the steel market.
Dalian Commodity Exchange moved up by Yuan 14 and currently at Yuan 616 (USD 89/MT). On the other hand, Shangahi Futures Exchange is currently at Yuan 3,406 (USD 491/MT), up by Yuan 76 (USD 11/MT) in a day.
“ The iron ore market is likely to be supported in the near term as steelmakers are still seeing good profit margins” a Chinese trader said.
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