The 62% Fe iron ore market moved either side of the $90-per-tonne mark for most of October, with the average price falling by 3.5% month on month, while the average price for 65% Fe iron ore fell by 2.7%.
Traded volumes for the Singapore Exchange's 65% Fe derivatives contract - which was launched in December 2018 and which is settled against Fastmarkets' daily index for iron ore, 65% Fe Brazil-origin fines, cfr Qingdao - reached a new high of 3.84 million tonnes in October, up by more than 70% from September."The [volume of] 65/62 spread trading increased significantly this month, with many industrial clients involved, and the 65% outright contract served quite well to manage the risks to mills' high-grade inventories," brokerage Mysteel Commodity Services said.In October (see table), the price spread between 65% Fe and 62% Fe widened slightly to $7.12 per tonne, while the discounts for concentrate tended to fall and some low-sulfur cargoes started to generate premiums.Price movementFastmarkets' assessment of the price of steel reinforcing bar (rebar), domestic, ex-whs Eastern China, averaged 3,641-3,671 yuan ($517-521) per tonne in October, with the midpoint down by only...