Spot prices for iron ore have risen for four consecutive days in China after losing six per cent in value in May.
The Steel Index’s 62 per cent benchmark .IO62-CNI=SI rose 50 cents to $173.10 per tonne. Platt’s 62 per cent index IODBZ00-PLT rose 25 cents to $174.00. Indian ore with 63.5/63 per cent iron content was quoted at $179-$181 per tonne.
But there are fears over energy supply in China with major cities having had power cuts. Although, yet to impact on production facilities, there are fears it will soon, and this is predicted to lead to a 30 per cent decrease in steel output.
As a result, forward swaps fell in value. The Singapore Exchange cleared June contract fell $1.00 to $172.50 per tonne, July dropped $1.58 to $171.50 and August lost $1.75 to $170.67.