The iron ore market continued to trend upward in July, with prices for 62% Fe materials rising to $120-per-tonne levels, which have not been seen since February 2014.
Steady demand for steel products sustained prices for iron ore, and even production curbs in China's steelmaking hub of Tangshan implemented last month to improve air quality did not reverse the direction of the market, several sources pointed out. During the month, the price spread between 62% Fe iron ore and 65% Fe products continued to narrow. The spread averaged $8.16 per tonne in July, compared with June's $12.34 per tonne. The Singapore Exchange's 65% Fe futures contract, which was launched in December 2018 and is settled against the daily Fastmarkets index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao saw trading volumes rise to record highs last month. A total of 2.105 million tonnes of the contract were traded, compared with 954,000 tonnes in June. Some brokers said there was hedging demand for the 65% Fe contract due to increased spot liquidity of Carajas fines and concentrate, and...