Iron ore price up as China port stocks hit over 8-month low
Monday, June 28, 2021 - 02:38:26

Imported iron ore stocked at Chinese ports dropped for a fourth straight week to 123.95 million tonnes as of Friday, hitting the lowest level since early October, data from SteelHome consultancy showed.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $218.62 a tonne on Monday, up 0.9% from Friday’s closing.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange ended daytime trading 2.1% higher at 1,196 yuan ($185.31) a tonne, up for a fourth consecutive session. It earlier rose to 1,209.50 yuan, its strongest level since June 21.

“Weekly Australian iron ore shipments have been disappointing through June, creating a tighter global supply-demand balance – not to mention the revolving door of incidents in Brazil,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.

“Iron ore and steel prices are once again rising higher … amid strong demand from the Chinese steel industry and supply issues from the largest global producers,” market analyst Fitch Solutions wrote in a note.

However, an improvement in supply and weaker consumption by downstream players at current high prices are expected to cap gains in the coming months, Fitch added. ore price up as China port stocks hit over 8-month low
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