IRON ORE MONTHLY: SGX's 65% Fe contract volumes climb up again

The seaborne iron ore market found an average price for 62% Fe fines that breached $90-per-tonne during May, while improving steel prices, supply uncertainty from Brazil and declining iron ore inventory at Chinese ports were major drivers behind the strong iron ore markets, Fastmarkets understands.

The monthly average price for 62% Fe iron ore rose 10.35% month on month to $93.16 per tonne in May, while the monthly average price for 65% Fe increased 8.6% from the month before to $109.31 per tonne cfr China, leaving 65%/62% spread relatively stable at $16.15 per tonne.
China's strong steel demand and production output supported the good appetite for raw materials last month, while the uncertainty surrounding Brazilian supply has added fuel to the price rise given the country's rising number of Covid-19 cases.
The Singapore Exchange's 65% Fe swaps contract - which is settled against Fastmarkets' daily index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao - continued to gain momentum with 3.57 million tonnes traded in May, the second largest month of trades so far in 2020.

James Graham Clarke, head of physical iron ore at Mysteel...

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