Iron ore prices in China have continued moving up Monday due to strong demand. Besides, the Chinese government has eased its monetary policy again, which also supports prices.
Today, 62% Fe Australian fines have been at $63/t CFR, up $1.5/t from Friday. It is strong buying interest that has encouraged suppliers to keep raising offers. Five iron ore deals have been struck on the exchange during the day. "With consumers replenishing stocks, many suppliers are unwilling to sell even at yesterday’s prices," a trader commented to Metal Expert. In addition, a slight increase in supply from Australia is not expected until the end of May, so factors curbing price increases are few so far.
The monetary policy easing has sustained iron ore prices. In May, interest rate has been expectedly reduced by 15 p.p. to 5.1%. Earlier, the authorities revised the rate in March.
Along with rising iron ore prices in the physical market, there has been a further increase in futures prices. In particular, 62% Fe fines on the Dalian Commodity Exchange have been quoted at RMB 441/t, up RMB 4/t as compared to Friday.
China: deal prices for iron ore,
Price, CFR Qingdao
June, to Hong Kong
Australian Pilbara fines
Australian Pilbara fines+lumps
Australian Newman fines
May 26 – June 4*