Iron ore spot markets finished mixed on Friday with higher grade ores rising while lower grades fell.
According to Metal Bulletin, the price for benchmark 62% fines rose by a further 0.37% to $64.95 a tonne, extending its rally from June 13 to 21.7%.
The benchmark has now risen in 11 of the past 12 sessions, recovering from the one-year low of $53.36 a tonne stuck in mid-June.
Across the grades, Brazilian ore with 65% Fe content increased by 0.38% to $79.70 a tonne while the price of 58% fines bucked the trend, losing 0.25% to $43.06 a tonne.
Metal Bulletin said the mixed performance coincided with wild movements in Chinese futures earlier in the session, limiting trading activity in physical markets.
“Volatile futures led to a drop in trading activity in the seaborne iron ore market,” the group said.
“The most-traded iron ore contract on the Dalian Commodity Exchange dived as low as 465 yuan per tonne, which dampened market sentiment. The contract recovered most of the losses to close just slightly lower compared with Thursday’s closing price.”
Providing few hints as to what direction spot markets will travel on Monday, futures finished Friday’s night session around the same levels as Friday’s day session close.
Here’s the final scoreboard for the session.
SHFE Rebar ¥3,372 , 2.00%
DCE Iron Ore ¥476.50 , 1.17%
DCE Coking Coal ¥1,130.00 , 1.35%
DCE Coke ¥1,766.00 , 1.44%
Trade in Chinese commodity futures will resume at 11am AEST, 45 minutes before the release of the Caixin-IHS Markit China manufacturing PMI index for June.