The share prices of major miners will come under pressure on the ASX today after another sharp fall in the Chinese iron ore price to 2017 lows on Friday.
The Metal Bulletin said seaborne iron ore prices (for 62% iron oxide) dipped below $US60 per tonne on a cfr basis in China on Friday (the seller pays the freight), “amid weakness in the futures and steel markets, and ahead of the Dragon Boat Festival public holiday, which lasts until Tuesday.”
Metal Bulletin said its 62% Fe Iron Ore Index was $US57.91 a tonne, down $US2.33 a tonne from Thursday, or a fall of 3.9%.
That took the week’s fall to 7.6% and 17.5% for May so far. In fact prices since the end of 2016 (when they were at $US80 a tonne) are down more than 27%.
BHP shares lost 2% on Friday to close at $24.01 on the ASX, Rio Tinto shares though rose 1.8% to $US63.64.
But shares in Fortescue Metals Group lost more than 4% to end at $4.85 and will be pressured with big falls in prices forits 58% ron oxide product.
The Metal Bulletin reported that Fortescue Metals Group is keeping its June price adjustments unchanged for its flagship products, at 30% for 56.7% Fe Super Special fines and 25% for 58.3% Fe Fortescue Blend fines.
“The holiday in China has also affected the coking coal market, with the focus on the seaborne market expected to be on Indian buyers in the coming days.
“Metal Bulletin’s indices were all unchanged, at $US157.33 per tonne cfr China (the seller pays the freight) and $US153.34 per tonne fob (the buyer pays the freight) Australia for premium hard coking coal, and $US154.32 per tonne cfr China and $US146.76 per tonne fob Australia for second-tier products,” The Metal Bulletin reported.
