Daily iron ore price update (onwards and upwards)

Iron ore prices for December 7, 2020:

Spot booming. Paper too. Steel stalled with margins for mills getting crushed.

Brazilian November exports fell to 31mt:

I don’t know what Vale is doing. It’s supposed to be increasing volumes. Chinese imports were down in November too:

Still bullish on prices for the next six months.

David Llewellyn-Smith
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Comments

    • Ukraine fnMEMBER

      Also crew rotation on ships. Some sailors haven’t been able to leave their ships for most of this year and the sailors that could replace them are sick etc and logistics to swap would be difficult with Covid running rampant. Maintenance and lack of available parts could also be a factor.

  1. This seen on Friday last:

    201204 9:56PM https://johnquiggin.com/2020/09/15/relax-losing-access-to-china-wont-make-us-the-poor-white-trash-of-asia/comment-page-1/#comment-231353

    Iron Ore (US$/tonne) current 137.80, week 129.95, month 117.70, year 88.00

    ASX Market Update
    Morningstar, Friday 04 Dec 2020 closing

    …Major Brazilian miner Vale overnight said it would not meet its production forecast for iron ore this year. The miner, like much of Brazil, has grappled with coronavirus infections and restrictions. The report means more demand for Australian iron ore from Chinese steel makers. Investors pounced. Fortescue Metals, which focuses on iron ore more than its main rivals, reached a record price of $20.77. Shares closed 13.27 per cent higher to $20.65. Rio Tinto gained 6.87 per cent to $112.20 and BHP rose 4.94 per cent to $41.25. Investsmart strategist Evan Lucas said the results were a simple case of supply and demand. “The demand from China for iron ore is only increasing,” he said. “Because the supply from Brazil is lower, China is having to take more from Australia and that’s driving up the price. “Iron ore is one thing that the Chinese won’t touch with any sort of geo-political tensions they’re engaging Australia with.”

    The Chinese were the catalyst for the other development, after they allowed shipments of Australian coal despite trade tensions. A Bloomberg report said a ship carrying Australian thermal coal, which had been among 50 ships waiting months to unload, was being allowed in. Shares in Whitehaven Coal closed 8.79 per cent higher to $1.48. The mining developments helped enthusiasm for the Aussie dollar, which rose above 74 US cents.