During the past week the Chinese iron ore market has increased slightly, aided by the rising trend in the domestic steel market. To date, a significant rise in iron ore prices in the domestic market has basically been confirmed, even though the final result of the annual iron ore negotiations is not yet known.
Product Name | Specification | Average Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Iron concentrate | damp base (iron content: 66 percent) | 810 | 119 | 30 |
India fine ore | 63.5 percent | 1,030 | 151 | 20 |
In the past week, the international shipping freight market fluctuated slightly. On March 11, the Baltic Dry Index (BDI) closed at 3.316 points, up 195 points compared with last week. On March 11, the average freight charge from Brazil to Beilun port in China was $29.02/mt, down by $0.85/mt week on week. Meanwhile, the average freight rate from Western Australia to Beilun on March 11 was $11.04/mt, up by $0.71/mt compared with March 4.
Iron ore prices in China registered a slight rise in the past week. At present, the price of 66 percent damp base iron ore in Tangshan, Hebei Province is at the level of RMB 810/mt ($119/mt, tax excluded), while the market prices in the northeastern regions stand at RMB 710/mt ($104/mt, damp base/tax excluded), both up by RMB 30/mt ($4/mt) week on week. Meanwhile, the prices of 63.5 percent Indian fine ore have risen to $128/mt FOB, while the CFR price (Tianjin Port) is at $138-142/mt. In addition, quotations of 63.5 percent Indian ore are up by RMB 20/mt ($3/mt) to RMB 1,030/mt ($151/mt) at Chinese ports, while the deal price of 62.5 percent Australian PB fines is at RMB 1,030/mt ($151/mt), up by RMB 10/mt ($4/mt) week on week, with the market price of 65 percent Brazilian fine ore up by RMB 20/mt ($3/mt) to RMB 1,070/mt ($157/mt).
After the slight weakness of the domestic iron ore market at the start of the past week, quotations of iron ore from overseas suppliers and spot ore quotations at domestic ports have all climbed up. So far, market prices of billet have seen a strong increase of RMB 200/mt ($29/mt) compared with the price before the Spring Festival (Feb. 14-21). In addition, quotations of hot rolled coil have already risen by RMB 200/mt ($29/mt) over the same period. Market players hold the view that prices of steel products in the domestic market are bound to rise in the coming period due to the increased prices of raw materials.
While China's domestic iron ore market has not observed a significant rise over the past week, more significant increases appear to be in store for the market in the coming period.