Iron Ore Spot Prices Reach $100

Steel Market Update was advised on Friday from one of our iron ore and steel trading sources in Asia that the Chinese export markets are in turmoil as spot iron ore prices drop, domestic (China) steel prices are dropping and export offers are being hit as well. On Friday of this past week The Steel Index reported 62% Fe iron ore fines as being $100.7/dmt (dry metric ton).

Our trading source provided the following information:

“Steel prices are now being held as Ore was HAMMERED today and we are now at USD100/mt CNF FO for 62% Ore on Index and bids BELOW this USD100/mt level!

We had HRC at USD530/mt FOB ST. LSD for 2.00mm and up in S235/S275/S355JR for EU which is the Min. Yield (i.e. 235N/mm2….), and Silicon Controlled to 0.03%, and today with the Forex draining from 1.40 to 1.356, no business can be done, and the mills asked if we can try USD510/mt… It is very unstable now John and the prices that I could give you are no longer valid now as the mills are dropping levels and it may be best to try again on Monday when I know all the new levels.”