Good sentiments in China support import iron ore prices

Import iron ore prices in China have posted small rises today, November 9, and over the past week, supported by sentiments, though steel production has been gradually going down.

Iron ore fines with 62 percent Fe content have risen by $0.3/mt today to $127.9/mt CFR. This level is $1/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated an increase of $0.35/mt on November 9 to $138.25/mt CFR, while up $1.55/mt week on week, SteelOrbis has learned.

Twenty-four deals for 264,800 mt in total have been concluded at Corex today, including 10,000 mt of 61.76 percent Newman fines transacted at RMB 996/mt ($138.7/mt), for delivery at Huanghua port.

During the given week, import iron ore prices have fluctuated within a limited range amid the increasing iron ore futures prices and rising deliveries and volumes arriving at ports. More blast furnaces have been implemented maintenance works, resulting in declining molten iron output and reduced demand for iron ore. However, market sentiments have been quite good, following China’s issuance of stimulus policies. Also, the recent accident at the Carajas railways used by Vale for iron ore transportation has caused concerns over possible delays in supply, though the company has not changed its quarterly shipment plans.

More Chinese steelmakers are anticipated to implement production restrictions, which will prevent iron ore prices from recording further strong rises. However, taking into account the positive sentiments in the steel market, no major retreat is possible for iron ore prices in the near future. It is thought that import iron ore prices may see a fluctuating trend in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have risen by RMB 12.5/mt ($1.7/mt) to RMB 939/mt ($131/mt) compared to November 2, while increasing by 1.79 percent compared to the previous trading day (November 8).

As of Thursday, November 9, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,853/mt ($537/mt), increasing by RMB 97/mt ($13.5/mt) or up 2.6 percent since November 2, while rising by 1.39 percent compared to the previous trading day (November 8).

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT.

$1 = RMB 7.1772