Last week the seaborne iron ore price ended up above $75/t cfr Qingdao, marking a new high since November last year and approaching the most recent peak witnessed at the beginning of March 2018.

Supported by new sales, the Kallanish KORE 62% Fe index jumped $1.03/tonne on Friday, to $75.50/dry metric ton cfr Qingdao. This has been the highest level registered so far in 2019 and is on the way to approacing the March 2018 high point.

The iron ore price rally seen since the beginning of December has been stronger that anticipated, with prices recoverying over $10/t in less than two months. Going forward, the trend could continue as the Chinese Lunar New Year approaches.

While stocks of iron ore at ports have recovered during the last week, indicating that the market is not tight in terms of supply, the usual recovery of finished steel prices after the Chinese New Year could well continue to give support to iron ore prices.

This Chinese New Year officially begins on 5 February this year, with celebrations expected to commence at the end of January.

IRON ORE OUTPUT TO CONTINUE INCREASING IN 2019