MMi Daily Iron Ore Index Report June 8 2020
The physical port stock prices for PBF in Shandong and Tangshan rose by 35-40yuan/mt today. Vale has been forced to suspend its Itabira mining activities to fight COVID-19, hitting swaps, futures and physical pricing despite Vale has affirming that its annual production guidance of 310-330 million mt remains unchanged. Mill demand dropped sharply due to the price hike while traders showed little concession on the price negotiating space and thus total concluded transactions were low. As the price spread between medium and low grade products has risen, mills appetite for low grade iron ore is likely to increase in the future.
Source: Metals Market Index (MMi)