DAILY: China iron ore prices come off record highs

On Tuesday, Mysteel's PORTDEX 62% Fe Australian Fines index reversed down by Yuan 45/wmt ($6.9/wmt) on day to Yuan 1,143/wmt, FOT Qingdao and including the 13% VAT. On the same day, the SEADEX 62% Fe Australian Fines price also slid by $9.9/dmt to $166.15/dmt CFR Qingdao. But neither decline offset the previous day's increases, Mysteel Global notes.

At the beginning of Tuesday, most iron ore traders' offering prices for their port inventories remained relatively stable, but later when iron ore futures prices on the Dalian Commodity Exchange fluctuated down, resulting in a large decline in the afternoon, some iron ore traders lowered their offering prices accordingly.

The fluctuation in ore prices might be a symptom of the bearish sentiment prevailing in the global macroeconomic market related to worries about the resurgent pandemic, according to some market sources. 

Subsequently, by 18:00 Beijing time on Tuesday, Mysteel had heard many deals concluded at prices lower than those on Monday, and the prices of some deals done in the afternoon had decreased more.

On Tuesday, the seaborne iron ore market also saw market prices slump. By 18:00 Beijing time, Mysteel had noted three deals concluded in the open market.

Written by Victoria Zou, zyongjia@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com