The price of high-grade 65% Fe iron ore fines looks set to break through the $230-per-tonne-cfr-Qingdao price ceiling amid tight supply of seaborne cargoes and hefty mill margins, industry sources told Fastmarkets.
Fastmarkets' index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao stood at $221.90 per tonne on Wednesday April 21, up 12.6% from $197.10 per tonne on April 1.
The price spread between
Fastmarkets' index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao and
Fastmarkets' iron ore 62% Fe fines, cfr Qingdao index reached a historical high of $33.67 per tonne on Wednesday April 21, compared to a spread of $29.50 per tonne on April 1.
1) Low port inventory
Inventory levels of Iron Ore Carajas fines (IOCJ) at Chinese ports are low, with most cargoes being held by trading houses, a Singapore-based buyer said.
Sources estimate that there is less than 700,000 tonnes of IOCJ at Rizhao port as of mid-April, or about 200,000 tonnes less than the previous week.
"Demand for high-grade fines is strong right...