The uptrend in the iron ore market since 2019 started halted in August, with a month-on-month price decline of 24% for 62% Fe material and a 23% price decline for 65% Fe material.
The 65% Fe derivatives contract on the Singapore Exchange – which was launched in December 2018 and settled against Fastmarkets’ daily 65% Fe iron ore index – stayed above 2-million-tonne trading volumes in August, compared with 2,104,800 tonnes in July.
The price spread between 65% Fe iron ore and the 62% Fe equivalent had been range bound above $8 per tonne last month.
Price moves
Some participants attributed the decrease in the iron ore market to the increased supply from major producers and non-mainstream sources and lower margins for steel mills.
“The general margin…