Iron ore prices were buoyant as Lunar New Year celebrations got underway

Chris Ratcliffe/Getty Images

Iron ore spot markets ended last week largely unchanged as Chinese New Year Celebrations got underway.

The spot price for benchmark 62% fines held steady at $US83.34 a tonne, according to Metal Bulletin, leaving it within touching distance of the multi-year peak of $US83.65 a tonne level struck earlier in the month.

Spot prices were also unchanged across both lower and higher grade ores during the session.

Metal Bulletin noted that the calm across spot and physical markets came despite another surge in Chinese futures markets.

“China‚Äôs ferrous futures recorded notable across-the-board gains during the day, though trading volumes were largely unchanged from a day earlier,” it said, adding that “the gains failed to cause any ripples in the physical market”.

“Most market participants that Metal Bulletin reached out to during the day either did not respond or said they were already on holiday,” the group said.

With Lunar New Year celebrations now well underway, trade in Chinese iron ore futures will remain closed until Friday.

This eliminates a key driver of spot and physical markets at a time when activity levels are already traditionally lower than normal.

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