Iron ore, scrap rebound as output restrictions ease

Seaborne iron ore prices continued to recover lost ground on Tuesday, tipping over the $200/tonne boundary. Scrap prices, too, have increased as Tangshan has eased its production restrictions andChinese markets appears set to sustain elevated steel prices.

The Kallanish KORE 62% Fe index increased $2.11/t to $200.49/dry metric tonne cfr Qingdao. The Kallanish KORE 65% Fe index gained $1.83/t to $233.21/dmt cfr, and the KORE 58% Fe index jumped $6.23/t to $175.42/dmt cfr. 

On the Dalian Commodity Exchange September iron ore settled up CNY 47/t at CNY 1,137/t ($178.43/t), while on the Singapore Exchange July 62% Fe futures settled up $9.43/t at $198.16/t. The same contract for 65% FE and 58% Fe futures settled up $8.81/t at $228.58/t, and up $22.84/t at $174.4/t respectively.

Chinese scrap prices have also been recovering. 6mm+ heavy scrap delivered to mills in the Yangtze River Delta increased CNY 28/t to CNY 3,596/t. In Tangshan, billet prices were flat at CNY 5,000/t.

Australia’s Port Hedland, meanwhile, is to become more expensive. The Pilbara Ports Authority will increase port charges by 25% for the financial year ending August 2022, according to the new state budget of Western Australia. It expects this to raise an additional AUD 195 million ($151m) over four years.

Tomas Gutierrez UK