Last week iron ore prices in China drifted slightly, though remaining at a relative firm level despite the uncertainties created by the coronavirus outbreak.

Ahead of the Chinese holidays for Labour Day, prices for KORE 62% Fe stood at slightly above $82/tonne cfr Qingdao. The KORE 65% Fe index, meanwhile, gained $0.15/t to $99.10/dmt cfr, and the KORE 58% Fe index gained $0.33/t to $75.29/dmt cfr.

The lull in the market created at the end of the week by Labour Day in China and abroad allowed some time to question the fundamentals of the market. BHP chief executive Mike Henry said in a Q&A session earlier in the week that he remains confident that demand for both iron ore and oil will recover as the impact of the coronavirus fades. He notes that the fundamentals of population growth, industrialisation and rising living standards should continue to fuel commodities.