Iron ore prices continued to climb this week on expected increase in demand from the steel industry. At Tianjin Port, iron ore fines 62% Fe, rose 3.7% to $119.6 per dry ton, while 58% Fe rose 4.5% to $110 per dry ton, according to The Steel Index (TSI). Australian traders with $122 offers failed to attract buyers while Brazil consignments were also sold at below market price.
At Qingdao Port, 62% Fe, 2% Al rose 3.1% to $120.5 per dry ton while 68.5%, 63% Fe rose 3.6% to $121.6 per dry ton, TSI added.
China, the largest producer and consumer of steel, has seen production levels quite strong in September and companies need to stock more iron ore to sustain current levels. China's average daily crude steel output stood at 1.932 million tonnes last month, up 2 percent from August and not too far off record highs above 2 million tonnes earlier this year.
The most active rebar contract for May delivery on the Shanghai Futures Exchange closed down 0.7 percent at 3,651 yuan ($580) per tonne, but rose 0.3 percent for the week.
News developments
Reuters reported that ArcelorMittal, the world's largest steelmaker, is exploring the sale of a minority stake in its Canadian iron ore business.