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Chinese spot iron ore prices rise to $165-170 cfr

Import prices for 63.5% Indian fines have touched $165-170 per tonne cfr on Tuesday.

Offers have been all above $170 per tonne and one Indian cargo was auctioned at $173 per tonne.

A trader in Shandong told MB that one transaction for 63-64% Fe content Indian fines was concluded at $171.5 per tonne cfr last week.

The latest prices are up $3-5 per tonne from last weeks $162-165 per tonne, and are moving closer to the peak of $180 per tonne seen in 2008.

While offers are rising, tonnages shipped slowed due to tight supply of iron ore from India as well as high price levels, market participants told MB.

We got no cargoes for 63.5% grade iron ore this week, a Tianjin trader noted, Supply for medium-high grade Indian is extremely restricted.

A lack of Australian and Brazilian iron ore on the spot market intensified the situation, a trader in Beijing said.

Most market participants thought spot iron ore prices would stand at or above $170 per tonne for 63.5% grade Indian fines this week.

62% Fe content Australian fines were put at $169-170 per tonne cfr, according to various sources.

Source: Metal Bulletin Ltd.