China: Spot Iron Ore Prices Up by USD 5

Chinese spot iron ore index increased to USD 122.6/MT, CFR China, today. The prices picked up by USD 4.85/MT D-o-D as against USD 117.75/MT, CFR China assessed yesterday (8th July'19). The prices have increased due to continual supply constraints of raw material in the global market. As per reports, supply is tight for Australian origin fines cargo.

The drop in Brazilian exports for the month and fall in Chinese iron ore port inventories have exerted upward pressure on the prices. As per data released by Brazilian Govt, the country's total export of iron ore stood at 29.40 MnT in June'19, down as against 29.83 MnT in May'19. Exports dropped significantly on yearly basis as against 35.29 MnT in Apr'18. Also, the steel making hub of China- Tangshan has moved up the dates for production curbs by two months from Aug'19 to Oct'19 paving way for further price rise.

Dalian iron ore futures contract for September closed at 6% higher at Yuan 880.5.

Domestic billet prices up

In early trading today, the price of section steel grew strong, and the billet rose by RMB 30/MT, to see some local mills and some in Changli area offered at RMB 3,650/MT, cash including tax.