Seaborne iron ore prices continued to tick higher on Monday. Despite the Chinese public holiday and ongoing lockdowns, iron ore markets remain optimistic on future government support.
The Kallanish KORE 62% Fe index gained $0.58/t to $160.68/dry metric tonne cfr Qingdao. The Kallanish KORE 65% Fe index increased $0.89/t to $184.53/dmt cfr, and the KORE 58% Fe index slipped $0.17/t to $140.84/dmt cfr.
On the Singapore Exchange, May 62% Fe futures settled up $2.41/t at $163.75/t, while the same contract for 65% Fe and 58% Fe futures settled up $2.37/t at $186.51/t, and up $4.19/t at $144.89/t respectively.
China was on holiday for Tomb Sweeping Day, but overseas iron ore markets continued to tick higher. Shanghai remains under lockdown, along with many other cities. There has been some opening up in the northeast, in Jilin province. Key eastern Chinese markets however remain largely closed.
Demand is still very weak. Markets nevertheless continue to expect support later in the year to make up for weakness now. This has led any market priced more than a couple of months out to be bullish despite the current economic problems.
