Iron ore prices into China continue to firm despite slower...

Iron ore prices into China continue to firm despite slower market

Singapore (Platts)--23Jan2009
The Chinese iron ore import market was very quiet Friday as many traders,
Chinese or non-Chinese, were already away for the Chinese New Year holidays
and would only return in February. However, there was still a firmness in the
market and based on discussions with market participants the Platts reference
price for 62% Fe content iron ore fines was up at $73.5-74.5/dmt CFR North
China, from $72-73/dmt CFR North China Thursday.

Two medium grade iron ore spot trades were reported; one was a 61.82%
fines cargo sold $78.00/dmt CFR Xingang, and another was a 62.98% lump sold at
$80.00 CFR Xingang, both were loading February 6-15 and the deals were
concluded on January 21. The 61.82% Fe trade was not seen as repeatable or
representative of where 62% Fe prices are, sources said.

Meanwhile sources reported that 63.5% Fe iron ore was still in the range
$80-82/dmt CFR North China, and sellers were still trying to achieve above
$80/dmt CFR North China. A Singapore-based trader reported a transaction done
Thursday for 63/63% Fe at $67.15/dmt FOB India, with two ports loading freight
rates from East India at approximately $12/wmt, this equated at close to
$80/dmt CFR China. The same seller has been selling this grade within
$65-68/dmt FOB India during this week.

On the lower grades, the market was still firm. A 57/56% Fe cargo was on
offer Friday by a large India trading house. The seller was aiming for $50/dmt
FOB India, encouraged by a 56% Fe cargo sold $45-50/dmt FOB India by another
trader Wednesday. Sources noted the increase in lower grade prices and
reported traders taking positions, perhaps an indication that price could rise
further after Chinese New Year. An Australian 58.08% fines cargo was sold at
$61.00 CFR Beilun & Nantong China, loading February 11-20. This deal was done
January 21.

Freight rates were steady, handy cargoes were $9-10/wmt from the west
coast of India to China while two port loading on the east coast remained at
$12/wmt.