Seaborne iron ore prices rebounded on Friday April 13 to $65 per tonne cfr amid gains in China’s steel and futures markets.
The East Asian country’s focus on environmental protection continues to affect miners producing low-grade iron ore, which have had to offer price discounts on their products, although some believe that Chinese mills’ narrowing margins could alter market dynamics.
Brazilian miner Vale is “enthusiastic” about China’s economic prospects, which will result in increasing demand for its high-grade Carajás iron ore, it believes.
And Australian iron ore producer Mount Gibson Iron expects to benefit from the commencement of sales at its Koolan Island project due to the “[rise] in the premium for high-grade ores.”
Meanwhile, the ample availability of seaborne coking coal has given Chinese buyers the edge in the spot market, with prices showing a gradual decline, as has been underlined by recent transactions.
Decreases in China’s domestic and export coke prices have not...