Seaborne iron ore prices broke another new high on Wednesday as they extended Tuesday’s surge a little further. Supply concerns have continued to spread and iron ore has now increased by $6.69/tonne in three days.
The Kallanish KORE 62% Fe index gained another $1.25/t to $104.94/dry metric ton cfr Qingdao, the highest level since 6 May 2014. On COREX, 170,000 tonnes of Brazilian Blend sold at $111.1/t with a laycan in 10-19 July, while 90,000t of Jimblebar sold at a floating price.
On the Dalian Commodity Exchange, September iron ore settled at CNY 769.5/t ($111.25/t), up another CNY 24.5/t, while on the Singapore Exchange July 62% Fe futures settled down $0.56/t at $102.29/t. In Tangshan, billet prices slipped CNY 10/t to CNY 3,500/t.
Iron ore port markets continue to be constrained by low arrivals. Continuing unconfirmed rumours that Rio Tinto would cancel some shipments of PB fines have added to the sense of tightness.
As if that was not enough, the Development and Reform Bureau of Zunhua in Hebei issued a notice that it would cut power to 86 beneficiation plants for 45 days starting this week. That will take out 600,000t of concentrate from the local market.