IRON ORE MONTHLY: Traded volumes for SGX 65% Fe contract reach new high

The 62% Fe iron ore market moved either side of the $90-per-tonne mark for most of October, with the average price falling by 3.5% month on month, while the average price for 65% Fe iron ore fell by 2.7%.

Traded volumes for the Singapore Exchange's 65% Fe derivatives contract - which was launched in December 2018 and which is settled against Fastmarkets’ daily index for iron ore, 65% Fe Brazil-origin fines, cfr Qingdao - reached a new high of 3.84 million tonnes in October, up by more than 70% from September.
“The [volume of] 65/62 spread trading increased significantly this month, with many industrial clients involved, and the 65% outright contract served quite well to manage the risks to mills’ high-grade inventories,” brokerage Mysteel Commodity Services said.
In October (see table), the price spread between 65% Fe and 62% Fe widened slightly to $7.12 per tonne, while the discounts for concentrate tended to fall and some low-sulfur cargoes started to generate premiums.

Price movement

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Karen Shi

November 05, 2019

06:20 GMT