Posted on 10 Dec 2020
Seaborne iron ore prices have topped $150/tonne for the first time in over seven years. FMG meanwhile says port stocks could hit a four-year low as it ramps up Eliwana output.
The Kallanish KORE 62% Fe index gained $1.74/t to $150.08/dry metric tonne cfr Qingdao, the highest level since 25 February 2013. The Kallanish KORE 65% Fe index increased 1.73/t to $162.20/dmt cfr, and the KORE 58% Fe index increased $1.65/t to $132.74/dmt cfr.
On the Dalian Commodity Exchange May 2021 iron ore settled down CNY 9/t at CNY 909.5/t ($139.25/t), but on the Singapore Exchange January 62% Fe futures settled up $1.70/t at $146.64/t. The same contract for 65% Fe and 58% Fe futures settled up $1.70/t at $160.57/t, and up $1.27/t at $128.78/t respectively.
Chinese iron ore port stocks have continued to decline, reaching 118.03 million tonnes last Friday, according to a count by SMM. FMG says it now expects port stocks to continue to fall through to the first quarter of 2021, with the level possibly breaking under the 100mt barrier for the first time in four years.
FMG says it has passed the first iron ore through its Eliwana processing facility. The 30m t/year dry processing facility will be used to process ores to add to FMG’s West Pilbara Fines product. This will be shipped to Port Hedland via 143km of new railways, which are currently being completed.
Source:Kallanish
