Derivatives lend strength to seaborne iron ore concentrate market

February 23, 2021 / www.metalbulletin.com / Article Link

Prices for seaborne iron ore concentrate increased in the week ended Friday February 19 along with a strengthening of the derivatives market while those for pellets softened from recent highs amid a slow recovery of demand after the Chinese New Year holiday.

Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $192.61 per tonne, up $8.14 per tonne.
65% Fe blast furnace pellet, cfr Qingdao: $213.54 per tonne, down $1.03 per tonne.
Key drivers
The forward month iron ore swaps contract on the Singapore Exchange strengthened last week, which contributed to the upward momentum experienced by prices for concentrate, sources said.
A buyer source in southern China said that gains experienced by the swaps contract in the absence of Chinese market participants in the earlier part of last week contributed to the price surge experienced by the concentrate segment.

He noted that demand had...

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