Spot iron ore prices topped $60 per ton as traders restocked on the raw material betting demand will stay strong in the months ahead.
Steel's rally lifted the spot price of iron ore back above $60 a ton for the first time in six weeks.
The pick-up in steel demand is largely seasonal, according to traders and analysts, as warmer weather typically lifts construction activity.
But the price rise this year has been quite rapid because the market was caught with low steel stocks following shutdowns of some Chinese plants in the past year on weak demand. Signs of recovery in China's property sector also aided sentiment.
Buying interest for spot iron ore cargoes was also firm, though not as brisk as in the steel market, traders said.
Iron ore for immediate delivery to China's Tianjin Port stood at $61 a ton.
High inventories of iron ore at China's ports may cap any further increases in prices of the material, said Commonwealth Bank of Australia.
Stocks of imported iron ore at China's ports stood at 96.8 million tons as of April 15, not far below a one-year high of 97.85 million tons the week before, sources said.
Meanwhile, BHP Billiton cut its fiscal 2016 iron ore production guidance by 10 million tons to 260 million tons due to bad weather and rail maintenance, further reducing shipments into an oversupplied global market.
Following are international iron ore prices:
Grade % Fe |
Origin |
Product |
load port |
destination |
Apr 21, 2016: cfr ($/ton) |
Apr 20, 2016: cfr ($/ton) |
Apr 19, 2016: cfr ($/ton) |
Apr 18, 2016: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
61 |
59 |
59 |
58 |
62 |
India |
Fines |
FOB Vizag |
|
31 |
29 |
29 |
28 |
62 |
Australia |
PB |
Dampier |
Tianjin |
61 |
59 |
59 |
58 |
63.5 |
Brazil |
Fines |
Brazil |
China |
63 |
61 |
61 |
60 |
Source: Traders