IRON ORE MONTHLY: China portside markets trade at premium through April

The seaborne iron ore market was depressed in April 2020 compared with the first quarter of the year, because of a slow recovery from a severe winter, but buying activity at Chinese ports remained resilient due to healthy short-term production by local mills, which kept the portside markets trading at a premium throughout the month.

The monthly average price for 62% Fe iron ore slipped to $84.42 per tonne cfr China in April, and that for 65% Fe to $100.66 per tonne, widening the spread to $16.24 per tonne.
Problems with supply from Brazil continued to support the prices for high grades and low-alumina iron ore fines in both the seaborne and Chinese port markets, which was reflected in the wider price spread between 65% and 62% Fe material.
The Singapore Exchange's 65% Fe swaps contract, which is settled against Fastmarkets' daily index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao, had a robust month in April, with 3.30 million tonnes traded. The monthly volumes for the 65% Fe contract have been above 3 million tonnes so far this year.

Market prices

Fastmarkets' daily price assessment for steel reinforcing bar (rebar), domestic, ex-whs Eastern China, averaged 3,418-3,447 yuan ($480-484)...

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