Iron ore prices keep on grinding higher [IMG] DAVID SCUTT JUL...

Iron ore prices keep on grinding higher


DAVID SCUTT
JUL 26, 2018, 7:55 AM

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https://edge.alluremedia.com.au/uploads/*/2018/07/Grind-higher.jpgMatt Cardy/Getty ImagesTough slog, but getting there.

• The benchmark iron ore spot price hit a six-week high on Wednesday.
• Chinese steel prices continued to rally, underpinned by production curbs and speculation over the potential for further stimulus to be delivered by Chinese policymakers.
• Steel and bulk commodity futures fell in overnight trade. However, other commodity markets have rallied since they closed, suggesting futures may follow suit when they reopen today.

Iron ore prices keep on grinding higher.
According to Metal Bulletin, the spot price for benchmark 62% fines rose 0.7% to $66.03 a tonne on Wednesday, leaving it at the highest level since June 19.
As seen in the chart below, it’s been a slow grind higher for the benchmark in recent weeks, moving back toward the centre of the trading range its been stuck in since the end of March.
The price action also remains choppy with the price moving the opposite direction to the day before in each of the past five sessions.
https://edge.alluremedia.com.au/uploads/*/2018/07/MBIOI-62-July-26-2018.jpg
Like the benchmark, lower grade ores also gained with the price for 58% fines adding 0.5% to settle at $38.87 a tonne.
Higher grades managed to buck the broader trend with 65% fines holding steady at $92 a tonne.
Unusually, the underperformance of higher grades came despite renewed strength in Chinese steel prices on Wednesday.
Rebar futures in Shanghai finished trade at 4,017 yuan, higher than Tuesday’s night session close of 3,991 yuan. The October 2018 contract briefly hit a high of 4,033, a level not seen since September last year.