Reuters reported that a 170,000 tonne cargo of 62% grade Australian Pilbara iron ore fines for delivery to China in September was sold on the Singapore based globalORE platform at USD 96.50 per tonne on Tuesday. That was up from the sale of a same grade cargo at USD 95 on Friday.
The threat for iron ore prices remains the excess supply that has kept spot prices below USD 100 per tonne since May 19.
A faster than expected increase in iron ore production by the world’s biggest miners in Australia and Brazil this year is pushing less efficient smaller suppliers from Europe to Australia to the Middle East to cut output or shut altogether.
According to Australian government data, by 2015, major producers in Brazil and Australia will account for 1.15 billion tonnes or 83% of world seaborne ore trade up from 71% in 2012.
According to data compiled by Steel Index, iron ore for immediate delivery to China .IO62-CNI=SI stood at USD 94.30 a tonne . There was no pricing reference published on Monday due to a public holiday in Singapore. Iron ore is down nearly 30% this year, having fallen to a 21 month low of USD 89 in mid June.
Rebar and iron ore prices at 0706 GMT Contract Last Change Pct Change SHFE REBAR JAN5 3105 +40.00 +1.31 DALIAN IRON ORE DCE DCIO SEP4 695 +6.00 +0.87 METAL BULLETIN INDEX 94.65 +0.63 +0.67 Dalian iron ore and Shanghai rebar in yuan per tonne Index in dollars per tonne, show close for the previous trading day.
Source – Reuters