Seaborne iron ore prices dipped slightly on Friday with no new fixed price deals and falling futures. Chinese port stocks meanwhile have continued to increase, putting iron ore under significant pressure once coking coal ceases to provide support for higher grades.

The Kallanish index for 62% Fe Australian fines fell $0.97/t to $80.31/dry metric ton cfr Qingdao. Although there were no new fixed price deals on Friday, both major futures prices were down, with January 62% ore in Singapore down $1.44/t to $77.13/t.

In China meanwhile, iron ore port stocks increased another 560,000t last week to 112.99 million tonnes, according to MySteel. The availability of a variety of ores has not yet brought down prices because steelmakers are using high grade ores to offset the high cost of coking coal. Spot seaborne coking coal prices have already begun to come down from recent highs however and the end of winter heating demand could depress coking coal price back to a more sustainable level. Strong prices at the start of next year could therefore begin to fizzle out in Q2.