Spot iron ore dipped below $70/mt mark



KATM Exclusive

Spot iron ore prices in the seaborne market seesawed around $70/dry mt, in the week as the prices experienced downward pressure from the doubts regarding revival in the steel demand despite of ramping up of output by Chinese steel mills. Earlier in the year, the mandated production cut in China kept the iron ore prices in check, despite some upsurge in February and early March.

Moreover, the market conditions are still coping up the pressure from the US’ imposition of 25 percent tariff on the imported steel. Although, China’s direct export of steel to the US is marginal, but the sentiments are still bearish which were visible in paper markets.

Onto the benchmark iron ore prices for the week, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $69.60/dry mt CFR North China on Friday, depicting a fall of $1.75/dry mt for the day. Meanwhile, TSI 58% Fe Fines, 1.5% Al, CFR Qingdao port closed the week at $56.90/dry mt.

Futures market

Commodity futures related to steel and iron in China saw some decline as the Chinese steelmakers ramped up the production with the lifting of winter curbs aimed at fighting smog. Sentiments are also damped by the upcoming US tariffs on imports.

Iron ore futures traded lower on the Dalian Commodity Exchange Friday, with the most liquid May contract last trading at Yuan 483.5/dmt ($76.33/dmt), down Yuan 6.5/dmt on the day, and settling at Yuan 484.5/dmt, down Yuan 5/dmt over the same period.

Steel rebar futures also declined, with the most actively traded May contract on the Shanghai Futures Exchange last trading at Yuan 3731/mt ($589.04/mt), down Yuan 21/mt on the day, and settling at Yuan 3737/mt, down Yuan 11/mt over the same period.