Spot iron ore stabilizes around $60 per tonne: KATM Exclusive

6 November 2017

Iron ore prices in the sea-borne market remained range bound due to limited activity in the physical market, while iron ore futures recorded some correction on Friday as prices steadied around $60 per tonne (CFR China). Metal Bulletin’s 62% Fe Iron Ore Index closed for the week at $59.88 per tonne CFR Qingdao.

Only very few iron ore trades were reported at slightly higher prices at Chinese ports, but buyers side lined away as the week progressed due the restrictions for production of steel in China continued to weigh on spot iron ore demand.

Earlier, it has been widely reported that China has stepped up efforts to curb industrial production in some cities, including Handan, Tangshan and Taiyuan in the north, to fend off smog and clean its skies. Moreover, major steel mills in China have reportedly curtailed production already, with the nearing winters.

Futures market

At Dalian Commodity Exchange, the iron ore futures rose for a third day, gaining 0.57% to close at 439.5 yuan per tonne, on Friday.

Most traded coking coal futures on the Dalian Commodity Exchange rose 1.7% to 1,130 yuan per tonne by the close of the week, while Dalian coke futures edged up 0.2% to 1,729 yuan per tonne.

On to steel, the most active steel rebar contract on the Shanghai Futures Exchange edged down 0.05% to 3,656 yuan per tonne, on Friday.