Seaborne iron ore concentrate and pellet prices fell in the week ended Friday June 25 due to a weaker demand outlook for steel, sources said.
Fastmarkets iron ore indices
Pellet premium over 65% Fe fines, cfr China: $62 per tonne, down $0.40
66% Fe concentrate, cfr Qingdao: $241.32 per tonne, down $1.31
65% Fe blast furnace pellet, cfr Qingdao: $300.81 per tonne, down $4.11
Key drivers
Sentiment weakened for the iron ore concentrate and pellets market because market participants anticipate steel demand in China to weaken because of the rainy season, according to a trading source in southern China.
The southern China trading source added that steel prices have already started to weaken ahead of rainy season that typically begins in July, and this has caused mill margins to shrink. Traditionally, construction work - a major consumer of finished long steel - reduces during rainy season and this caps demand for steel products.
An analyst in Shanghai, however, believes that premium levels - typically added on top of a 65% Fe index...