Iron ore prices rose on Tuesday June 22, and there was market chatter about the potential resumption of blast furnace operations and the easing of emissions restrictions in Tangshan, sources told Fastmarkets.Fastmarkets iron ore indices
۶۲% Fe fines, cfr Qingdao: $214.32 per tonne, up $6.17 per tonne
۶۲% Fe low-alumina fines, cfr Qingdao: $216.00 per tonne, up $6 per tonne
۵۸% Fe fines high-grade premium, cfr Qingdao: $181.71 per tonne, up $6.18 per tonne
۶۵% Fe Brazil-origin fines, cfr Qingdao: $249.20 per tonne, up $10.20 per tonne
۶۲% Fe fines, fot Qingdao: 1,489 yuan per wet metric tonne (implied ۶۲% Fe China Port Price: $215.89 per dry tonne), down by 9 yuan per wmt
Key drivers
There is market chatter about some large blast furnaces resuming operations in Tangshan, a trading source in Shanghai said.
Five steel mills in Tangshan may also be allowed to lower their emissions restrictions from 50% to 30%, and another 15 mills could lower their ratio to 20%. Mills which have satisfied the government’s emissions requirements could lower their blast furnace emissions restrictions by another 5%, the source said.
These potential changes in the steel industry in Tangshan could improve sentiment and demand expectation in iron ore, supporting prices, the source added.
The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) fluctuated throughout the day on June 22 before closing up by 1.6% from the previous day’s close of 1,121 yuan ($173) per tonne.
The most-traded July iron ore forward-month swap contract on the Singapore Exchange (SGX) also rebounded from the previous day’s downtrend. By 6:19pm Singapore time, it had registered an increase of $7.91 per tonne compared with Monday’s settlement price of $196.94 per tonne.
A trading source in Singapore said the Chinese government’s strong supervision in commodity markets will limit the upside of steel and iron ore prices, and steel prices may fall due to higher supply if restrictions are eased.
Iron ore prices could be stable on increasing demand, the source added.
Quote of the day
“Iron ore prices remain volatile, so liquidity is limited in both the seaborne market and Chinese ports due to the high risk exposure in volatile markets, and only those whose positions are well hedged can afford to make commitments to the seaborne cargoes offered,” an analyst source in Shanghai said.
Trades/offers/bids heard in the market
Vale, Globalore, 170,000 tonnes of 62% Fe Brazilian Blend fines, traded at $216 per tonne cfr China, laycan July 12-21.
Rio Tinto, Beijing Iron Ore Trading Center, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the August average of a 62% Fe index plus a premium of $11 per tonne, laycan July 25-August 3.
Rio Tinto, Globalore, 170,000 tonnes of 62% Fe Pilbara Blend fines, offered at the August average of a 62% Fe index plus a premium of $11.30 per tonne, laycan July 26-August 4.
Vale, tender, 88,000 tonnes of 64.77% Fe Iron Ore Carajas fines, traded at $249.21 per tonne cfr China, bill of lading dated June 15.
Market participants’ indications for:
Fastmarkets index for iron ore 62% Fe fines
Pilbara Blend fines: $212.40-213.50 per tonne cfr China
Newman fines: $213.40-213.50 per tonne cfr China
Mining Area C fines: $206.90 per tonne cfr China
Jimblebar fines: $202.40-204.30 per tonne cfr China
Port prices
Pilbara Blend fines were traded at 1,455-1,465 yuan per wmt in Shandong province and Tangshan city on June 22, compared with 1,460-1,470 yuan per wmt on June 21, sources said.
The latest range is equivalent to about $211-212 per tonne in the seaborne market.
Dalian Commodity Exchange
The most-traded September iron ore futures contract closed at 1,139 yuan per tonne on June 22, up by 18 yuan per tonne from the closing price on June 21.
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