Iron ore rebounds as Port Hedland cleared from vessels

Iron ore price rebounded on Thursday, following the futures increase after Port Hedland started to clear vessels from the terminal amid nearing cyclone. The raw material improved even despite further slowdown of trading activity and increasing inventories at ports.

Australian iron ore fines 62% Fe rose by $1.5/t to $170.5/t CFR, while its futures on the DCE gained RMB 2/t ($0.3/t) after a more significant increase on the previous day. The Pilbara Ports Authority has said that Port Hedland began to clear large ships from the export terminal as cyclone Lucas continues to approach the Pilbara coast and is expected to make landfall on Friday. “It is too early to assess what will be the cyclone impact on iron ore supply, but it may aggravate the shortage currently seen in the global market,” a raw material trader said.

However, most other factors are not adding optimism to market moods. Iron ore port inventories kept piling up this week, rising by 0.7 million t to 125.5 million t, according to Steelhome.

Seaborne trade weakened further, with no deals being reported on platforms on January 21. “Steelmakers are waiting for price decrease because cost is high and margin is thin,” another source commented. Buying activity was also affected by another round of production cuts announced in Tangshan city from January 19.