Spot iron ore offers remained stable as rising supplies from top miners and overwhelming port inventories in China are expected to keep the steelmaking raw material under pressure.
Top iron ore miners in Australia and Brazil are expanding supplies despite tumbling prices and a gloomy outlook this year.
Iron ore shipments to China through Australia's Port Hedland rose 1 percent to 32.17 million tons in December, Pilbara Ports Authority figures showed.
For all of 2015, shipments to China rose to 377.88 million tons from 343.41 million tons in 2014, as top miners are maximizing output to squeeze out smaller rivals and increase market share.
"We believe the low cost Australian exporters will continue to gain seaborne market share at the expense of high cost producers in 2016, thus flattening the cost curve further," ANZ said in a research note.
Iron ore inventories at 42 Chinese ports rose further, up 0.9 percent to 96.869 million tons on reflecting weakening demand from steel mills.
Spot iron ore for immediate delivery to China's Tianjin port stood at $42 a ton.
Following are prevailing international offers:
Grade % Fe |
Origin |
Product |
load port |
destination |
Jan 7, 2016: cfr ($/ton) |
Jan 6, 2016: cfr ($/ton) |
Jan 5, 2016: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
42 |
43 |
43 |
62 |
India |
Fines |
FOB Vizag |
|
12 |
13 |
13 |
62 |
Australia |
PB |
Dampier |
Tianjin |
42 |
43 |
43 |
63.5 |
Brazil |
Fines |
Brazil |
China |
44 |
45 |
45 |
Source: Traders