Steel Products Prices North America

Iron Ore Spot Prices Break Below $75

Written by John Packard


Spot prices for 62% Fe iron ore fines, CFR Tianjin Port in China were reported by The Steel Index this morning as being down 4 percent to $72.10/dry metric ton. This is down 4 percent in one day and is, based on TSI records, the lowest we have seen since SMU began tracking iron ore beginning in January 2011.

We asked one of our Asian trading sources who is involved in iron ore and steel trading with China to comment on ore prices from his perspective. He commented on both the iron forecasted pricing as well as what is happening regarding steel offers out of China for export:

“On Ore, we see price dropping to around USD70/mt CNF FO and then an increase to USD74-76/mt CNF FO for a couple of weeks and then a slow/steady drop to USD60/mt over 4-5 months once the drop commences at the USD74-76/mt CNF FO level downwards. We should also start to see scrap at the USD280/mt CNF FO level.

“On export offers, because of the possible Tax Rebate announcement, no one is taking a chance John and very little business is being conducted. We expect to hear something in the coming 2-3 weeks on the Tax Rebate issue.”

Latest in Steel Products Prices North America