Some rare good news for iron ore bulls overnight: the spot price went higher, not lower!
According to Metal Bulletin, the spot price for benchmark 62% fines rose 7 cents, or 0.14%, to $49.18 a tonne.
The small increase, the first in four sessions, may have coincided with the release of October exports data from Australia’s largest iron ore loading port, Port Hedland.
“It was announced today that iron ore exports from Australia’s Port Hedland fell by 3% year-on-year in October on slowing demand from the largest consumer of the steelmaking raw material,” wrote analysts from Metal Bulletin overnight.
“The port shipped 36.5 million tonnes of iron ore last month, compared with 37.5 million tonnes in October last year, according to figures released by the Pilbara Ports Authority. The volume is also 7% lower compared with September’s record high 39.4 million tonnes.
“A total of 30.7 million tonnes of iron ore went to China through the port in October, down 3% from 31.7 million tonnes a year earlier. The volume is also 9% lower than September’s China shipments of 33.8 million tonnes.”
While that may have contributed to the small pop in the spot price, it must be noted that Chinese iron ore futures, down by more than 1% midway through Wednesday’s trading session, followed Chinese stocks higher in late afternoon trade on the back of news that was five months old.
This indicates that the rally of between 4-6% in stocks, the largest since August, may have also been a factor in the small rise in spot.
In what provides no clear signal of what to expect in the spot price this evening, the most actively traded January 2016 iron ore futures contract on the Dalian Commodities Exchange finished flat at 349 yuan in overnight trade.
The day session in Dalian resumes at 12pm AEDT.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.