Iron ore price, page-719

According to Platts, IO Spot Iron Ore down $2.50 or 3.7% to US$64.60/dry ton? Rcman, can you please confirm?

[April 17] Metal Bulletin’s 62% Fe Iron Ore Index Today: $66.25 per tonne cfr Qingdao Daily change: Down by $2.43 per tonne.

[April 17] Mysteel Iron Ore Index
Grade Product Index Change
62% Australian Fine 65.65 -3
58% Australian Fine 54.95 -2.75
65% Brazilian Fine 77 -3

Metal Bulletin confirmed those FMG orders I mentioned yesterday:

FMG rolls over May price adjustments for most products

Fortescue Metals Group (FMG) will keep the price adjustments for most of its iron ore products unchanged for May, having largely made increases since August last year.

The Australian miner maintained its adjustment for May shipments of 56.7% Fe Super Special fines at 27%, and that for 58.3% Fe Fortescue Blend fines at 15%, it confirmed with Metal Bulletin on Monday April 17. It will also roll over the 28% adjustment for its 58% Fe Western fines.

This is only for some forward contract sales, the SPOT is less discount now, which make sense, when IO price drops, margin in terms of % will get closer between 62% and 58% IO.

Tangshan market closing prices (in yuan):
Billet 2750 ↓40
Strip 2970 ↓30
Wire 3020 ↓20
Billet 3180 ↓20
Profile 3070 ↓30
Hot Roll 2950 ↓70
Mid Thick Sheet 3160 ↓40
Tube 3250 ↓30
Chinese IO 675 ↓20
Seaborne IO 505 ↓10

Nothing goes up and down forever. Although IO price continue the down trend, there would be a point where it bottoms. Currently Chinese housing policies means property developers are selling inventory, hence the low demand. Inventory will not last forever as more people are demanding better housing. Same as Contruction Steels, mills are reducing prices to move inventory, inventory has been reduced 8 weeks in a row now, again, inventory will not last forever. Steel profit margins are coming down in a rapid rate recently, some mills are down to less than 100 yuan now, there will be a point where some mills are starting to make losses, then we should see Steel prices stablise which will give confidence to both buyers and sellers. But ST, IO price looks like it‘s going down more.

DYOR.

Frank.