Iron ore swaps suffered another heavy round of selling pressure Monday as prices converged around the $100/dmt mark for contracts through to early 2013, despite thinner volume on a public holiday in Singapore. The $4-5 drop in swaps prices around the end of the day in Asia built on a fall of more than $3 seen Friday, with Chinese steel prices and physical iron ore still depressed.
The Q4 2012 swaps contract basis The Steel Index's 62%-Fe CFR Tianjin index traded at $100/dmt, down from $103.75/dmt on Friday. October swaps were also heard done at $100/dmt. TSI is an independent specialist publisher owned by Platts. The Calendar 2013 contract was valued below $100/dmt. A broker provided an indicative spread of $96/99 without seeing any firm interest in the contract as of just after midday London time.
In the physical iron ore market, Rio Tinto sold a Capesize Pilbara Blend 61%-Fe fines cargo at $111.75/dry mt CFR China. The 165,000 mt shipment specifies one main port in China loading between September 2-11. The price achieved Monday compared to a $115.13/dmt China deal on August 14 for a similar PB fines cargo sold by Rio Tinto.
Shanghai rebar futures for January plunged to mark new lows for the bourse's most active contract, while Chinese domestic spot steel prices continue to be weak.
Chinese hot-rolled coil prices reached their lowest level in at least 33 months. Anshan Iron & Steel joined Baosteel, Wuhan Iron & Steel and Shougang in cutting September list prices for flat steels.
The Platts IODEX 62%-Fe index was not published Monday owing to a public holiday in Singapore.
The TSI 62%-Fe CFR Tianjin index dropped 90 cents to $109.30/dmt