The average of Fastmarkets’ daily 65% Fe Brazil-origin iron ore index
rose by 3.8% to $136.50 per tonne cfr Qingdao in September, while the daily 62% Fe index
was up by 0.5% to $123.55 per tonne in the same period both on a cfr Qingdao basis, leaving an average spread to $12.95 per tonne, compared with August's $8.51 per tonne
Many mills had realized the cost efficiency of blending high grade with low grade products compared with mid-grade fines in late August, which caused the divergence in prices and inventory levels of the different grades.
About 34,000 lots of the SGX’s 65% Fe swaps contract - which is settled against Fastmarkets’ daily index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao - were heard traded in September.
“Physical trading activities slowed down along with price rising to a record high...