Iron ore markets are about to wake from their slumber

John Moore/Getty Images
  • Iron ore spot markets look set to spring back to life today after a week-long holiday in China.
  • Movements in Singaporean iron ore futures last week point to gains in spot and Chinese futures today.
  • Some analysts see the benchmark price pushing back above $100 a tonne in the near-term.

Iron ore spot markets look set to spring back to life today as Chinese participants return following Lunar New Year Celebrations.

On Friday, the price for 62% and 58% fines stood at $85.53 and $63.74 a tonne respectively, unchanged from where they settled on February 1.

After two days of no movement, 65% fines bucked the trend, lifting by 2.5% to $103.30 a tonne, leaving it at the highest level since March 2017.

For the first time since February 1, Chinese iron ore futures traded in Dalian will resume trade on Monday at midday AEDT.

The May 2019 contract last transacted at 621.5 yuan a tonne. Given the moves seen in Singaporean futures last week, further gains are likely to be seen in Chinese futures today.

Both Credit Suisse and the Commonwealth Bank believe the benchmark price for 62% fines could soon exceed $100 a tonne given the combination of disruptions to seaborne supply, restocking demand ahead of the spring construction season and already low iron ore port inventories in China.

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