Iron Ore Prices Slip After Six-Month High After Friday’s Close

Iron ore prices have remained quiet over the weekend, with iron ore spot and futures markets recording minor movements across the board last Friday.

As reported by Metal Bulletin, the iron ore spot price for benchmark 62% fines slipped to $69.13 a tonne, which is a decline of 0.1%.

Iron ore prices uneventful after China’s long weekend

Iron ore markets were tame only logging slight shifts across grades, and showed only moderate losses over the past three sessions. This is likely due to China’s long weekend impacting trade, with Chinese markets set to remain closed until Tuesday.

58% fines fell to 39.64 a tonne, down 0.1 according to Business Insider Australia. Meanwhile 65% Brazilian fines took a hit slipping by 0.2% to $96.60 a tonne.

This was reflected in Chinese futures markets during this session — iron ore, coking coal and coke futures all ended their sessions modestly. Trading at 501, 1286.5 and 2,384.5 yuan respectively.

Meanwhile, Shanghai Rebar futures were up compared to last Thursday night’s close, finishing trading at 4,149 yuan.

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Iron ore prices set to continue modest trading

In what appears to be a very uncharacteristic exchange for the usually volatile iron ore prices, you can see just how dependent iron ore markets are on the Chinese economy.

With the close of Chinese markets today on back of their public holiday, investors shouldn’t be surprised to see a restrained trade period. Especially considering steel and bulk commodities futures will be offline during this time.

That said, activity levels should ramp up on Tuesday after Chinese markets reopen for trading.


Ryan Clarkson-Ledward,
For  Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

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