IRON ORE DAILY: Missed steel demand expectations continue to depress prices

September 23, 2020 / www.metalbulletin.com / Article Link

Iron ore prices dropped again on Tuesday September 22, which market participants attributed to weak demand for steel and expectations for steel inventory to increase further after the Chinese national holiday (October 1-8).

Fastmarkets iron ore indices
62% Fe fines, cfr Qingdao: $117.30 per tonne, down $2.52 per tonne
62% Fe low-alumina fines, cfr Qingdao: $117.74 per tonne, down $2.31 per tonne
58% Fe fines high-grade premium, cfr Qingdao: $109.35 per tonne, down $2.44 per tonne
65% Fe Brazil-origin fines, cfr Qingdao: $130.30 per tonne, down $3.50 per tonne
62% Fe fines, fot Qingdao: 914 yuan per wet metric tonne (implied 62% Fe China Port Price: $124.90 per dry tonne), down by 9 yuan per wmt
Key drivers
The most-traded January iron ore futures contract on the Dalian Commodity Exchange (DCE) continued its downtrend but the rate of decline was slower than yesterday. The price rebounded in the morning trading session before entering a steady decrease in the afternoon to end 0.5% lower than Monday's close price.

The iron ore swap contracts...

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