Iron ore prices firm up due to anticipated steel demand



KATM exclusive

Sea-borne iron ore saw it prices inching towards $68/dmt mark primarily driven by the sentiments that the demand from Chinese steel mills will grow as the steel inventories fell in China due to increased demand for steel from infrastructure and housing sectors.

On to the benchmark iron ore prices, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $67.80/dmt CFR North China on Friday. Meanwhile, TSI 58% Fe Fines, 1.5% Al, CFR Qingdao port closed the week at $55.30/dmt.

Futures trade

Iron ore futures traded on the Dalian Commodity Exchange rose on Friday, with the most liquid September contract last trading at Yuan 482.5/dmt ($75.96/dmt), up Yuan 12.5/dmt on day, and settling at Yuan 477.5/dmt, up Yuan 8/dmt over the same period.

Steel rebar futures also increased, with the most actively traded October contract on the Shanghai Futures Exchange last traded at Yuan 3675/mt ($578.52/mt), up Yuan 60/mt on day, and last settled at Yuan 3650/mt, up Yuan 57/mt over the same period.