Seaborne iron ore prices strengthened July 5 on the backof...

Seaborne iron ore prices strengthened July 5 on the backof increasing steel prices with the 62% Fe Iron Ore Index at $221.40/dry mt CFR North China on July 5, up $4.1/dmtfrom July 2. Demand for medium-grade Pilbara Blend Fines remained healthy, but more end-users were heard expressing interest in other medium grade fines as losses began to appear. The greater affordability of MAC fines appealed to several mills despite weaker sintering properties compared to PBF. “We are considering using more MAC,” a Chinese steel mill source said. “The increased supply of MAC is preferred as supply consistency is important.” High-grade fines remained in demand. Market sources saw a lack of high-grade fines available to blend with low-grade fines. Discounts for Jimblebar fines, or JMBF, continued to widen as abundant quantities at portside has hindered demand for seaborne JMBF. (Platts)

Iron ore rose as investors weighed the demand outlook inChina after mills began to resume production and its key steel-making citystarted planned output restrictions. The steel hub of Tangshan has mandated a 30% output cut to run for the rest of the year for mills that don’t meet ultra-low emissions targets, according to researcher Mysteel. This comes as production gradually was brought back online after being halted for the Chinese Communist Party’s centenary celebrations last week. “Many steel mills in the Northern area have restricted output last week amid celebrations in the Beijing city, resulting in stronger prices in the short-term,” Sinosteel Futures Co. said in a note, “As some mills gradually resume production, a higher output may weigh on the prices.” (Bloomberg)