Daily iron ore price update (seaborne volumes drop)

Iron ore prices continued to surge yesterday, despite some hesitation on futures markets as concerns over current iron ore supply weighed on the complex. Here are the latest prices, with rebar and coking coal dropping slightly:

Seaborne volumes are in a slight decline:

After a two-week rise, iron ore volumes dispatched from 19 ports and 16 mining companies in Australia and Brazil – the biggest suppliers to top steel producer China – declined over Dec 28-Jan 3 by over 1 million tonnes, or 4.3%, from the week before, Mysteel consultancy reported.

At the same time, portside iron ore inventory in China shrank to 126.75 million tonnes as of Dec. 31, down 4.1% from last year’s peak of 132.15 million tonnes recorded on Nov. 13, SteelHome data showed.

“Despite well-balanced iron ore market fundamentals, iron ore prices have reacted to relatively lower weekly shipments out of Australia and Brazil,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.

Additional support emanated from the U.S. dollar depreciation and an indication of the beginning of China’s seasonal steel restocking cycle over the past few days, he said.

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  1. Donald Rumsfeld

    Same pattern as every retreat.

    Volumes are collapsing in ore as the steel production required in advance of the infrastructure stimulus is now complete.

    The high price is now a hangover from commodity speculators who are about to lose their shirts.

    Enjoy the RBA being exposed like 2010 on the idea that this was a permanently new high plateau for iron ore with their half trillion money printing fiasco. All good while demand for the AUD is high from China, but now it will simply translate into currency failures and inflation.

    NOICE !!!

    Best way to fix inflation is to print more money – lots more money, maybe issue a thousand dollar note, or a 10k note !!

    Wow – i mean there is no inflation when you just print money and an uninhabitable suburban block in a crime ridden suburb 45 minutes from the CBD starts at $1.2 million – nope !! And to service that you need to ask be paid $5k a week for delivering newspapers, and bread costs $1000k because – wages, because housing costs – no worries though – the new 50k bank note will fix that.

    Here – have some free money – we finally worked it all out – just use magic.

  2. I think metals have a way to go over the next month before stalling. I’m heavy in industrial commodities and up 16% the last two days.

    If I’m wrong then my stops will be hit.