IRON ORE PRICES IN CHINA TREND TO INCREASE IN RECENT TRADING SESSIONS, REACHING 218.62 USD/TON ON JUNE 28 BECAUSE THE AMOUNT OF ORES STORED IN THESE PORTS IS AT THE LOWEST LEVEL IN THE LAST 8 MONTHS.
Data from market research firm Fastmarkets MB (UK) shows that the price of imported iron ore with 62% iron content in Northern China (CFR price at Qingdao port) closed the trading session on June 28 at 218.62 USD/ton, up 0.9% compared to the closing price of the trading session last week.
The price of iron ore delivered in September 2021 on the Dalian Commodity Exchange (DCE) increased 2.1% to 1,196 Yuan (equivalent to 185.31 USD)/ton; marking the 4th consecutive price increase session. During the trading session, the price of iron ore on the DCE floor at one time reached 1,209.50 Yuan/ton - the highest level since June 21, 2021. Further es.
Iron ore prices in China have tended to increase again in recent trading sessions when iron ore inventories at the country's major ports are low. For the whole of last week, the amount of imported iron ore stored at Chinese ports decreased for the fourth consecutive week, to 123.95 million tons. This is the lowest level ever recorded since October 2020, according to data from steel market consulting firm SteelHome (China).
Mr. Atilla Widnell, managing director of commodity market consulting firm Navigate Commodities (Singapore), said "Australia's weekly iron ore exports remained low throughout June 2021, causing the global market to face supply tensions. In addition, iron ore supply from Brazil also encountered difficulties with mining incidents."
Research firm Fitch Solutions predicts that global iron ore supply will improve in the second half of this year, thereby limiting the increase in iron ore prices. In addition, Fitch Solutions believes that high steel prices will reduce demand from end users, thereby creating downward pressure on steel prices as well as iron ore prices.
(According to Industry and Trade Magazine)