The outlook in the iron ore segment has improved further on Wednesday, February 11, following stronger futures, firm demand and expectations that the impact of coronavirus on steel demand in China will finish in March. Moreover, Vale has cut its January-March production guidance from 68-73 million mt to 63-68 million mt due to heavy rains. Prices for fines with 62 percent of Fe content have added $2.5/mt to $88/mt CFR, while Brazilian iron ore fines with 65 percent have surged by $2.7/mt to $104.5/mt CFR.
There have been two deals reported over the day at the trading platform COREX. About 170,000 mt of Pilbara fines with 62 percent Fe have been traded based on March index plus $2.15/mt. About 190,000 mt of Brazilian 65 percent Fe fines have changed hands at $104.5/mt CFR in contrast to the deal at $101.8/mt CFR yesterday. Chinese steelmakers have started to gradually increase production and though steel prices have been still at low levels, the outlook for the near future improved after the government asked manufacturers to come back to work as soon as possible.
Iron ore futures at Dalian Commodity Exchange have added RMB 19/mt ($2.7/mt) over the day and have come to RMB 619.5/mt ($89.8/mt).