The  seaborne  iron  ore  market  hit  its  highest  level  for 30 months as a hike in steel prices 

ushered in more demand for feedstock and pushed up a spate of spot deals. 

S&P  Global  Platts  assessed  the  62%-Fe Iron Ore Index at $95.05/dry mt CFR North China 

Tuesday, up  $1.30/dmt  from  Monday. The  previous high was $95.50/dmt CFR North China 

August 7, 2014. 

The front-month March IODEX swap was up $1.80/dmt over the same period to $91.15/dmt. 

"I hear steel trading has been really hot, with strong demand from end-users for finished steel 

products,"  said  a  Singapore  trader, adding  that  widening  steel margins would continue to 

support iron ore prices in the near term. 

Concurring that stronger steel margins were paving the way for more restocking, a mill source 

in  central  China  said many steel enterprises were producing at almost full capacity. The mill 

source added that mills were  were making an average of Yuan 400 ($58) for every metric ton 

of  steel  produced  while  some  were  making Yuan 1,000 for some products such as hot roll 

coil. 

"Chinese  steelmakers have  usually laid idle their furnaces for overhaul around this period in 

previous  years  when  demand was tepid, but now many have postponed their overhaul plan 

and produce at full capacity," said the mill source. 

The  physical  price of Tangshan steel square billet was up Yuan 100/mt on the day at Yuan 

3,330 mt ($484.08/mt) ex-stock Tangshan Friday. 

Bullish sentiment also extended to the derivatives market Tuesday. 

Iron  ore  futures traded on the Dalian Commodity Exchange continued to rise Tuesday, with 

the most liquid May contract last trading at Yuan 732/dmt ($106.41/dmt), up Yuan 18/dmt on 

the day, and settling at Yuan 727.50/dmt, up Yuan 22.50/dmt over the same period. 

Steel  rebar  futures  also  increased, with the most actively traded May contract in Shanghai 

Futures  Exchange last  trading at Yuan 3,575/mt ($519.70/dmt), up Yuan 29/mt on day, and 

settling at Yuan 3,589/mt, up Yuan 72/mt over the same period.