Iron ore prices slip below $65/mt mark



Spot iron ore prices saw a mini free fall in the week with China experiencing across-the-board retreat in its vast iron and steel market amid concerns over a looming trade war with the US. The sentiments were further marred by the decline in the futures markets.

Moreover, the increase in the iron ore port stocks resulting in high availability of material at major Chinese ports is affecting the iron ore prices, with mills bidding at lower prices. Iron ore inventories at Chinese major ports rose marginally from the last week to 160.38 million tonnes.

Looking at the benchmark iron ore prices for the week, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $64.05/dry mt CFR North China on Friday. Meanwhile, TSI 58% Fe Fines, 1.5% Al, CFR Qingdao port closed the week at $51.35/dry mt.

Futures market

Commodity futures slumped with risk aversion growing after the US President Donald Trump unveiled tariffs on up to USD 60 billion worth of Chinese imports. In retaliation, China’s Ministry of Commerce is considering imposing a 15% tariff on a list of US products that includes steel pipe and a 25% tariff on a second list that includes aluminium products.

The most-traded rebar contract on the Shanghai Futures Exchange for May delivery closed down Yuan 250/mt day on day at Yuan 3,369/mt ($571/mt),and last settled at Yuan 3,460/mt, down Yuan 163/mt over the same period. The most active May hot-rolled coil contract plummeted by Yuan 211/mt or 5.6% day on day to Yuan 3,536/mt Friday.

Iron ore futures trading on the Dalian Commodity Exchange also dived, with the most liquid May contract last traded at Yuan 437.5/dmt ($69.15/dmt), down 29/dmt (6.22%) on day, and settling at Yuan 447.5/dmt, down Yuan 20/dmt over the same period.