Iron ore prices experienced first free fall in the year



KATM Exclusive

Last week, the seaborne iron ore prices were seen nearing $80/dry mt, but by the end of this week the prices shaved off more than 10% to near $70/dry mt mark. Some experts felt that the prices have already seen the peak with strong prices in the first two months.

Market was already under pressure from the US’ imposition of 25 percent tariff on the import of steel. Additionally, the futures market also recorded losses, thus keeping the overall sentiments bearish.

On the fundamental side, the Chinese steel mills seems to have enough stocks as of now to ensure normal production in the near term. Moreover, cargo shipments of downstream steel products stand slack and steel mills are bearish towards the coming market.

Looking at the benchmark iron ore prices for the week, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $70.25/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 $57.05/dry mt.

Futures trade

Chinese futures slumped to their weakest since November on Friday after steel and metals associations in China called on Beijing to retaliate against the United States for slapping hefty tariffs on steel and aluminium imports.

Iron ore futures traded on the Dalian Commodity Exchange tumbled Friday, with the most liquid May contract last trading at Yuan 483.5/dmt ($76.20/dmt), down 17/dmt on the day, and settling at Yuan 492/dmt, down Yuan 18/dmt over the same period.

Steel rebar futures also plunged, with the most actively traded May contract on the Shanghai Futures Exchange last trading at Yuan 3890/mt ($613.07/mt), up Yuan 99/mt on the day, and settling at Yuan 3939/mt, up Yuan 86/mt over the same period.