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Iron Ore prices up another 1.5% to $141.50

Seaborne iron ore spot prices delivered into China continued their upward trend Thursday. Buying interest remained limited but those that needed to purchase were prepared to pay at slightly higher levels than earlier in the week.

Platts 62%-Fe fines moved up $1.50/dmt to $141.50/dmt CFR North China Zhejiang-based trader Zheshang Holdings bought a 80,000 mt cargo of 61.5%-Fe Pilbara Blend fines from Sinochem International at $141/dmt CFR China, a person familiar with the matter said. The companies remained in price negotiations as of Thursday evening on the other half of the shipment comprising 62.5%-Fe PB lump.

It wasn't clear whether Sinochem bought the cargo on the same day from Rio Tinto, although market participants said the earlier chain of the trade took place at $140/dmt for the fines.

"The buyer is taking a risk by buying this cargo at a price higher than the market expectation, it can be a challenge to resell them at a higher price to the end-users (steel mills) especially when steel prices are weak," said a Singapore-based trader.

Besides the PB cargo, Rio Tinto was also said to be privately offering a shipment of 57%-Fe Robe River fines to a small group of participants.

Separately, the miner offered a whole Capesize shipment of PB fines loading January 20-29 in a tender that will close Thursday, industry sources said. Sources said there was more interest from the trade than the mills, and while currently supply and demand are fairly balanced, some further buying is expected before the Chinese New Year.

"I know there are some who need to buy one or two cargoes before the Chinese New Year," said a trader based in Europe.

In India 62.5/62%-Fe was still on offer at $144/dmt CFR North China.


This iron ore commentary is an abridged version. Full commentary is available to all Platts Steel Markets Daily subscribers


Source: Iron Ore Price Assessments, Daily Charts, Steel News – Metals | Platts
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