Chinese Spot Iron Ore Fines Price Climb on Supply Concerns, Falling Port Stocks

Chinese spot iron ore prices increased sharply yesterday i.e 15th May'20 to USD 93.25/MT, CFR China. The prices picked up by 6% as against USD 87.85/MT towards beginning of the week (11th May'20). The prices depicted sharp rise on D-o-D basis as against USD 90.75/MT as on 14th May'20.

The spot iron ore price increase were supported by rising demand and lower supply of material. The concerns over coronavirus have been impacting the Brazilian supplies of iron ore cargoes and the falling Chinese port inventories continue to exert upward pressure on the prices.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped to 111. 95 MnT as against 112.95 MnT assessed a week ago.

As per sources report, the construction activities and automobile have recovered and hence, favored price rise for the week.

Dalian iron ore futures picked up

The most active iron ore contract for September 2020 delivery yesterday gained 21.5 yuan (USD 3.03) to close at 668 yuan per tonne.