Stronger buying interest fuels a sian iron ore market
Singapore—
Seaborne iron ore spot prices rose Monday on stronger Chinese buying interest amid an increase in physical and steel futures prices.Platts assessed the benchmark 62%-Fegrade $2.50/dmt higher on the day at $143/dmt CFR North China.
The upswing was reflected in RioTinto’s sale of a 165,000 mt cargo of 61.5%-Fe Pilbara Blend fines Monday at$142.50/dmt CFR Main China port, loading March 12-21. The trade met with mixed reactions, with some suggesting it reflected the upward trend, and others believing it was above the current market.
“$142.50/dmt is reasonable. There is definitely demand, as this cargo was snapped up very quickly once it entered the market. I would be confident of being able to resell it for a higher price if I had gotten the cargo,” a Singapore-based trader who attempted unsuccessfully to bid for the Rio Tinto shipment told Platts Monday.
“The iron ore market is getting bullish after steel billet prices made strong gains over the weekend,” a Hebei-based mill source said. Spot prices of steel billet in Tangshan were up Yuan 50/mt at Yuan 3,740/mt ($594/mt) ex-stock over the weekend, according to mill sources in Hebei. Shanghai rebar futures also gained ground Monday, rising Yuan 58/mt to Yuan 4,282/mt.
However, a Beijing trader described this trade as “a little spark in the market,” which he believed was not indicative of current market conditions. There was not too much support in China for higher raw material prices, with downstream demand lackluster as the housing and construction industries were weak, which was being exacerbated by the tight credit situation, he added.
Another trader from Shanghai said PB fines retailing at above $140/dmt CFR China was “high,” suggesting he would be cautious about entering the market at this point. He would wait for PB fines to fall to $135/ dmt CFR China again, he continued, as he was not too optimistic about the amount of room the Chinese government had in taking meas ures to boost the economy.
Separately, Rio Tinto sold 75,000 mt 65%-Fe South African Palabora Mining Co concentrates at $153/dmt China Main Ports Friday, loading Mar 12-22, market participants said. India’s Essel Mining was in the market to offer a 54,000 mt cargo of 63/62%-Fefines loading over February 27-March 3, in a tender that closed Monday.
In Europe, Ukrainian miner Metinvest was offering 80,000 mt of 63%-Fe Ukrainian pellets loading by March 31, in atender closing February 27, 7:00 pm Beijing time (1100 GMT).
The cargo has 9% silica, 0.44% alumina, 0.04% phosphorus, 0.04% sulfur, and 3% moisture content, according to market
participants who received the tender. The miner also offered a Panamax cargo of 67%-Fe Ukrainian concentrates with 6.5%silica, 0.35% alumina, 0.03% phosphorus, 0.03% sulfur, and 11.5% moisture, with the same loading and tender closing date.
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