By Victoria Zou | MySteel
China’s imported iron ore prices in both the spot and futures markets have been rather volatile since February 3, the supposedly first working day after the lengthy Chinese New Year holiday, and the fluctuation may probably continue in the near term with the mix of positive and negative signals making it hard for investors to agree on the market trend, market sources shared over March 4-6.
China’s iron ore market fundamentals have been rather intact, as reduced demand has been balanced out by lower supply in the first quarter so far, and some positive signs have also emerged in Chinese steel markets with many industrial sectors in the country other than in Hubei having reopened for operations especially since the last week of February.
The global economy, the bigger context for the iron ore market, however, has been with more uncertainties when as of March 8, there had been 105,586 confirmed novel coronavirus disease (COVID-19) cases, with 80,859 in China and the balanced shared among the other 101 countries, territories, and areas, according to the latest situation report from the World Health Organization.
Iron ore, as a bulk commodity that has both the physical and derivatives characteristics, saw the two forces take turns in leading the price movements.
Over February 3-March 6, in the physical market, Mysteel’s SEADEX 62% Fe Australian iron ore fines ranged $79.90-91.65/dmt CFR Qingdao, and Mysteel’s PORTDEX 62% Fe Australian iron ore fines moved between Yuan 604-680/dmt FOT Qingdao and including the 13% VAT…Full Story