Platts reported that Iron ore prices are starting to firm as a trade was reported for a 61.7% Fe Australian fines at USD 60 per dry metric tonnes CFR north China, the cargo is for prompt loading. Taking into account Fe value, it means that Platts assessment is USD 60 per dry metric tonnes to USD 60.5 per dry metric tonnes CFR north China for 62% Fe grade.
According to the report, this is an increase of over USD 4 per dry metric tonnes from Wednesday’s assessment of USD 56 per dry metric tonnes which was up by 1 per dry metric tonnes from the previous day, after a fall of USD 2.5 per dry metric tonnes on Monday.
One trading source said that Iron ore 58/57 Fe grade is moving fast with prices at USD 32 per dry metric tonnes to 35 per dry metric tonnes FOB Goa. Iron ore fines 63.5% is still at USD 65 per dry metric tonnes to USD 67 per dry metric tonnes CFR north China a number of sources say. Current freight rates are USD 6 per dry metric tonnes for Handymax and Panamax from India to North China.
Meanwhile, there is still pressure on Cape vessels from Australia with rates between USD 4.65 per wet metric tonnes to USD 5.25 per wet metric tonnes and a trading source reporting business as low at USD 4.65 per wet metric tonnes. A slight decline was also see for vessels heading from Brazil to north China with rates at just over USD 10 per wet metric tonnes.
Whether this momentum can be sustained is not yet apparent. Overall sources said that prices are at least stabilizing and that spot levels have reached rock bottom. An Indian trading source said that "The question is whether it is sustainable," adding that prices needed to remain stable for a week or two and not start to drift lower again.