Spot iron ore offers consolidated after a recent rally as Chinese buying interest paused along with gains in steel prices, industry sources said.
Shanghai steel futures slipped after touching a high earlier this week as Chinese traders returned to the market after last week's Lunar New Year holidays.
Benchmark 62% grade iron ore for immediate shipping to China's Tianjin Port stood at $46 a ton.
As traders anticipate some pick-up in steel demand in China, the world's biggest consumer and producer, it is likely iron ore prices will not see sharp falls at least over the next two weeks, said an iron ore trader.
"We need to see how steel prices move, but I don't think we're going back to December levels anytime soon," the trader said.
Iron ore touched $37 a ton on December 11, 2015. After falling for the past three years, iron ore prices regained some footing at the start of 2016, gaining around 7% so far. But analysts doubt any rally would be lasting due to shrinking Chinese steel demand and as big miners continue to boost output.
Following are international iron ore prices:
Grade % Fe |
Origin |
Product |
load port |
destination |
Feb 18, 2016: cfr ($/ton) |
Feb 17, 2016: cfr ($/ton) |
Feb 16, 2016: cfr ($/ton) |
Feb 15, 2016: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
46 |
46 |
44 |
44 |
62 |
India |
Fines |
FOB Vizag |
|
16 |
16 |
14 |
14 |
62 |
Australia |
PB |
Dampier |
Tianjin |
46 |
46 |
44 |
44 |
63.5 |
Brazil |
Fines |
Brazil |
China |
48 |
48 |
46 |
46 |
Source: Traders