Robust steel production rates in China kept seaborne iron ore prices above $100 per tonne cfr China for the whole of June, but meager profit margins are beginning to keep Chinese mills away from higher grades of the steelmaking raw material.
Prices for 62% Fe iron ore averaged $102.49 per tonne cfr last month - a 10% month-on-month increases - while those for 65% Fe products averaged $115.45 per tonne cfr - 5.6% higher.A derivatives trader in Beijing said the flexibility in the quotation periods for cargoes of iron ore concentrate had driven up demand for the 65% Fe contract, with traders using the contract to hedge their risk. In addition, traders use the 65% contract to manage their inventories...