The Steel Index (TSI) daily iron ore reference price hit its highest level in 12 months on Dec. 18, reaching $107.4 per dry metric tonne. This reference price, for 62% Fe content fines CFRFO China port, represents an 82% increase since March, when the price dipped to $59.1/dmt. The price hit its previous high in August, before falling back sharply to $76.1/dmt in September. Since then prices have been volatile, with this week alone seeing an increase of 5.2% despite falling freight rates on the key routes into China. “In my opinion, the levels we’ve seen in the spot market this week are as a result of tightness in supply and continued Chinese demand. I don’t see the market correcting for a least another week or two,” saif Jerry Yu a Hong Kong based trader.
