Spot iron ore prices inch up following overnight gains in futures

Published: Oct 23, 2019 18:03

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Pilbara fines were traded at 680-682 yuan/mt in Tangshan

SHANGHAI, Oct 23 (SMM) – China spot iron ore prices edged higher on Wednesday, as traders raised their offers for spot cargoes at ports following overnight gains in futures.

Pilbara fines were traded at 780 yuan/mt in east China’s Shandong, and at 680-682 yuan/mt in the top steelmaking hub of Tangshan. Trades were done at 680 yuan/mt in Tangshan on Tuesday.

The most active iron ore contract on the Dalian Commodity Exchange for January delivery pared some overnight gains to end the trading day 1.22% higher at 620.5 yuan/mt.

While trades improved, gains in spot prices were capped by cautious sentiment across steelmakers as Tangshan will intensify production curbs until noon Thursday.

A steel mill in the smog-prone northern region told SMM that it will increase inventories of raw materials, on fears of potential restrictions on transport and production as the winter approaches.

Chinese steelmakers’ demand for iron ore remained strong, as they operated in high gear to chase decent profits.

SMM calculations showed that blast furnace steel mills could see a profit of 400 yuan/mt on rebar as of October 23, with iron ore of $87/mt.

Market commentary Iron ore

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