During the past week the iron ore market has been on a rising trend in China due to increased demand. With market demand due to return to normal in future, there appears to be little room for further iron ore price increases.
Product name | Specification | Average price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Iron concentrate | damp base (iron content: 66 percent) | 1,000 | 149 | +30 |
India fine ore | 63.5 percent | 1,200 | 179 | +30 |
During the week in question, the international freight market increased slightly. On October 14, the Baltic Dry Index (BDI) was at 2,769 points, up 107 points on the previous week. On October 14, the freight rate on the Tubarao, Brazil-Beilun/Baoshan shipping route was $30.69/mt, up $1.02/mt week on week, while on the same day the freight rate on the Western Australia-Beilun/Baoshan route was $12.08/mt, neutral week on week.
After the National Day holiday, China's iron ore market increased. At present, the transaction prices of 66 percent damp base iron ore are at RMB 1,000/mt ($149/mt, VAT excluded) in Tangshan, while in the northeastern region market prices of iron ore are at RMB 920/mt ($137/mt, damp base, VAT excluded), up RMB 30-40/mt ($4-6/mt). Quotations of 63.5 percent Indian iron ore are at $139/mt FOB, while Tianjin port transaction prices stand at $158/mt (CFR). Meanwhile, mainstream quotations of 63.5 percent Indian iron ore at Chinese domestic ports are at RMB 1,200/mt ($179/mt) , up RMB 30/mt ($4/mt), the transaction price of 62.5 percent Australian PB fines is RMB 1,160/mt ($173/mt), up RMB 30/mt (4/mt) on the previous week, while the market price of 65 percent Brazilian iron ore fines is RMB 1,260/mt ($188/mt), up RMB 30/mt ($4/mt) week on week.
During the past week the Chinese iron ore market has continued to increase, but the future market may see a softening. The market increased as domestic iron ore fines prices rose and as some mills in Hebei province returned to production, while port inventory had also decreased. However, the present rising trend may not last long. FThe domestic market is not stable. Steel mills' November prices are neutral, indicating that most mills are not optimistic about the future.