Seaborne iron ore prices rose amid pockets of optimism around macroeconomic news Aug. 31 while trading activities were largely muted, according to market sources.
Trading activities for medium grades fines were thin Aug. 31, sources said, noting stronger demand for low and medium brand options in recent days.
“Mills’ demand for low-grade fines are good right now, it is a more cost-effective option,” said a China-based iron ore trader.
In the wider macroeconomic environment, news around China easing home purchase policies offered buoyancy to markets, according to trade sources.
On the higher iron content front, during the Platts Market on Close assessment process as at 5.30 pm Singapore time, CITIC Metal (HK) Limited was offering a Capesize vessel cargo of Brazilian Carajas fines with specifications 65.17% Fe, 1.19% Al, 2.39% Si at $126.95/dmt basis 65% Fe CFR Qingdao, with final loading on Aug. 12.
In China’s domestic concentrate market, sources continued to see firm buying activities for concentrate in Tangshan with trades concluded at Yuan 1,100/dmt DDP Tangshan for 66% Fe material.
Meanwhile, some buyers have started to turn towards seaborne materials. With that, the supply has been eased compared with a week ago, according to steel mills in Tangshan.
Meanwhile, with low steel production margins, steel mills’ preference has switched to using more low-grade fines. However, after FMG narrowed September discounts for term contracts
of SSF and FBF, sellers at portside held their offers and sought high prices.
Platts assessed 62% Fe IOPEX Yangtze River Ports China at Yuan 951/wmt FOT on Aug. 31, up Yuan 27/wmt from Aug. 30, or at $123.54/dmt on an import-parity basis.
Disclaimer: this article is from the SBB STEEL MARKET DAILY, the copyright belongs to the original author, and only represents the original author's viewpoint.
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