Iron ore unchanged at week closing

20 February 2017

Exclusive

Iron ore prices remained at $90.80 per tonne at week closing unchanged from earlier levels. Futures market remained weak in the last two days and inventory at ports once again reached 118 million tons. This gave no room to the iron ore prices to once again peak further.

Iron ore has slipped from nearly $96 per tonne in the last week to $91 per tonne indicating the weakness in fundaments driving the commodity prices. Traders are unable to take positions once again as the prices are extremely very high and scope for upward movement very much limited.

Ironically, it can neither be said that iron ore will plunge at this moment because mills are making adequate margin. Rebar and billet prices are up by $2-4 per tonne on Thursday and Friday which show that the market has further room for improvement in the coming weeks. Rebar inched up by to $436 per tonne FOB China with domestic price of billet going up to Yuan 3180 per tonne.