Negative sentiment and weakening margins at the physical iron ore market

Physical iron ore tenders witnessed Brazilian mining giant Vale (NYSE: VALE) sell a 90,000t cargo of 63.63%-Fe iron ore Sohar fines at US$122.20/t, according to Tuesday's report from shipbrokers Simpson, Spence and Young (SSY). Multinational resource group BHP Billiton also traded a 100,000t cargo of Australian Newman fines at US$121.50/t, and another 110,000t cargo of Yandi fines at US$108.50/t, SSY said. Rival resources group Rio Tinto sold a 165,000t cargo of its 61%-Fe Pilbara blend fines at US$124.01/t, SSY said. The swaps market endured the same downward trend, as values drifted throughout the day. December prices traded between US$114.25/t and US$114.50/t. Prices for January reached their highest mark at US$114.00, SSY said. SHFE rebar prices closed south once more, and spot rebar prices also declined.