Forward prices retreat in May after firmer April

摘要

Iron ore forward prices firmed considerablyacross the curve in late April as a surgein buying pushed up the underlyingphysical spot market. The front monthsrose by more than $9/mt, offering sellersan opportunity to lock in considerablyfirmer sales prices. At current levels, thedifference between $55/mt and $65/mt can mean life or death for producersselling at close to or below production anddelivery costs to China, so the surge mayhave seen more juniors come to the tableto hedge forward sales.