China Imported iron ore margin widens to 2.19 yuan/mt on firmer spot prices

The average imported iron ore margin widened from 0.04 yuan/mt to 2.19 yuan/mt in the latest period, driven mainly by an average rise in port spot prices.

On the supply side, SMM shipping data showed arrivals at major Chinese ports fell 15.7% week-on-week to 23.2663 million mt in the week ended October 30. The short-term drop in arrivals lent some support to port spot prices. On the demand side, stocks at 35 ports rose slightly by 300,000 mt last week, while average daily port outbound volume fell 35,000 mt. Steel mills continued to buy on an as-needed basis, and with environmental production curbs in northern China, hot metal output may keep falling. Lower arrivals offered short-term support to spot prices, but demand lacks fresh growth, and the late pullback in futures also signalled weak upward momentum. Iron ore prices are likely to remain range-bound in the short term. News on long-term contract negotiations and the progress of environmental curbs in northern China are worth watching. The import margin is likely to hover between small profits and small losses in the short term.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →