Iron ore prices aren't doing very much

  • Iron ore spot markets recorded minimal price movements across the major grades on Friday.
  • Chinese steel and iron ore futures staged a late recovery during the session with those gains sustained in overnight trade on Friday.

Iron ore spot markets recorded minimal price movements across the major grades on Friday.

According to Metal Bulletin, the price for benchmark 62% fines fell three cents to $86.65 a tonne.

58% fines also fell by three cents to settle at $69.20 a tonne. 65% fines was the big loser for the session, at least in relative terms, sliding 0.3% to $99.50 a tonne.

The big move came from pellet markets with the price for 65% ore (MBIOI-PT) slumping 7.4% to $131.29 over the week, partially reversing prior gains that were fueled by ongoing supply disruptions from Brazil.

The modest weakness in spot markets came despite a large reversal in Chinese futures on Friday.

According to the Dalian Commodities Exchange, the May 2019 iron ore contract jumped to 618.5 yuan, up substantially from Thursday’s night session close of 605.5 yuan.

That move may have been helped by buying in Chinese steel futures in Shanghai with the most actively traded rebar and hot-rolled coil contracts finishing at 3,731 and 3,706 yuan respectively, up from 3,685 and 3,677 yuan respectively on Thursday evening.

Like iron ore contracts, coking coal and coke futures were also bid, ending the session at 1,295 and 2,163 yuan respectively.

As seen in the scoreboard below, all contracts except for coking coal managed to climb further on Friday evening, possibly reflecting improved sentiment towards US-Sino trade negations that boosted broader cyclical assets in the second half of Friday’s trading session.

SHFE Hot Rolled Coil ¥3,735 , 1.22%
SHFE Rebar ¥3,753 , 1.19%
DCE Iron Ore ¥619.00 , 2.06%
DCE Coking Coal ¥1,286.50 , 0.12%
DCE Coke ¥2,171.00 , 1.28%

Trade in Chinese commodity futures will resume at midday AEDT.

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