Global iron ore prices took a breather on Tuesday with the Metal Bulletin 62% index price falling back to around $US87.
Traders said the fall happened as Chinese buyers retreated to the sidelines to assess the market and its overall direction after the steep rise in the wage of the January 25 mine dam disaster in Brazil that killed more than 120 people, with close to 200 missing,
The Metal Bulletin’s 62% Fe (iron oxide) Iron Ore Index price settled at $US87.65 a tonne down $US2.93 per tonne or 3.2% from Monday’s near two year high of $US90.58 a tonne.
Metal Bulletin’s 62% Fe Pilbara Blend Fines Index fell by a similar amount – $US2.93 – to $US88.49 a tonne. The Metal Bulletin 58% Fe Premium Index edged up by 50 cents a tonne though to $US81.88 a tonne (which will bring a smile to the dials at Fortescue Metals because 58% Pilbara fines is its basic export product). Metal Bulletin’s 65% Fe Iron Ore Index jumped by $US2 or just over 2% to $US100.50 a tonne. (That’s the high quality ore Brazil ships to China).
On the ASX on Tuesday BHP shares rose 0.7% to $36.28, a new seven year high. Rio Tinto shares fell 0.2% to $92.02 and Fortescue Metals Group shares eased 0.1% to $6.24.
