Spot iron ore prices remained steady

18th June 2018

Sea-borne market for iron ore remained firm supported by China’s real estate data and futures. However, the transactions remained low due to prolonged weekend holidays. However, it is expected that the prices can ease marginally due to upcoming steel curbs in China.

Tangshan has asked industrial plants to implement emergency anti-pollution measures over June 14-17 as heavy smog has been forecast for those days. Some mills were asked to shut down their sintering and shaft furnaces but mills with desulphurising equipment will be exempt from the curbs.

Looking at the benchmark prices of sea-borne iron ore, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $66.00/dmt CFR North China on Thursday. Meanwhile, TSI 58% Fe Fines, 1.5% Al, CFR Qingdao port closed the week at $56.00/dmt. Prices were not published on Friday being a holiday for Eid-al-Fitr.

Futures trade

China’s benchmark Shanghai rebar futures hit a 9-1/2-month peak on Friday after firm property data, and marked their third consecutive gaining week. The rebar prices, which have risen nearly 6 percent so far this month to around six-month highs, dipped 0.1 percent to 3,880 yuan ($604.88) a tonne during early trade on Friday. The most-active iron ore futures on the Dalian Commodity Exchange gained 0.3 percent to 474 yuan a tonne.

Official data showed on Thursday that sales growth of China’s real estate hit a near one-year high, with new construction starts measured by floor area up 20.5 percent in May from a year earlier, indicating a sign of growing confidence among property developers.