IRON ORE MONTHLY: Traded volumes for SGX's 65% Fe contract hit new record

The seaborne iron ore market maintained its momentum in March, even with the Covid-19 pandemic causing turmoil for the global economic outlook and leading to steel production cuts and weakening demand outside of China.

The monthly average price for 62% Fe iron ore was largely stable at $88.58 per tonne cfr China in March, while that for 65% Fe iron ore was at $103.45 per tonne. The price spread between 65% Fe and 62% Fe breached $15 per tonne due to supply disruptions in Brazil.
Trading volumes for 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, saw a new record last month of 38,526 lots, up 25% from February during a volatile month.
James Huang, senior iron ore broker from GFI Group attributed the rising 65% Fe contract volumes to the increasing interest among participants in both hedging their outright high-grade exposure and in trading the 65/62 spread.

"Demand for imported iron ore concentrates, which are priced basis the 65% Fe iron ore index,...

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