The seaborne iron ore market agreed on the logic behind the rise in prices on the first day of trading after China's return from the Lunar New Year on Monday February 11 but by day two it failed to reach an agreement on the rally's sustainability.
Fastmarkets MB 62% Fe Iron Ore Index stood at $90.58 per tonne cfr China on Monday, the highest level since March 2017, with market participants re-calibrating their supply expectations for the year following the suspension of operations at several of Vale's mines in Brazil.The 65% Fe Iron ore index, which is underpinned by Vale's high-grade product produced in the Carajas region where mining operations have not been suspended, dropped $0.80 per tonne from February 8 to reach $102.50 per tonne on February 11.The rise in steelmaking raw materials prices on Monday "was expected", most market participants said. Although some sources cautioned there was still plenty of uncertainty regarding supply and demand making it difficult to forecast the sustainability of the rally and the extent of the price rise in the coming months.Markets started showing signs of cooling off on Tuesday February 12, with the futures contract on the Dalian Commodity...