Import iron ore prices in China have increased today, Thursday, June 8, while still rising compared to the previous week, supported by increases seen in raw materials and steel futures prices. Though steel production in China has declined since late May and this means that the iron ore consumption has been reduced, expectations for real estate support measures in China have been supporting sentiments and have led to iron ore prices exceeding $110/mt CFR this week.
Iron ore fines with 62 percent Fe content have moved up by $2.2/mt today to $112.25/mt CFR. This level is $6.95/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has indicated a rise of $2.05/mt on June 8 to $124.35/mt CFR, while up $6.85/mt week on week, SteelOrbis has learned.
On June 8, nine deals for 61,200 mt of iron ore have been concluded at Corex. In particular, 10,000 mt of 63.71 percent Fe content fines have been transacted at RMB 820/mt ($115/mt) delivered to port.
During the given week, import iron ore prices have continued to move up amid the increasing trends in finished steel prices and ferrous metal futures prices. Inventories of finished steel have seen declines, exerting a positive impact on market sentiments, which has bolstered iron ore prices. There were rumors of supportive policies for real estate enterprises, which positively affected sentiments in the steel market. However, since the hot and rainy weather conditions are approaching, demand for iron ore may slacken due to the slowing down of construction activities. It is thought that iron ore prices in the Chinese market may rise slightly in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have moved up by 6.5 percent to RMB 791/mt ($111/mt) compared to June 1, while increasing by 2.66 percent compared to the previous trading day (June 7).
As of Thursday, June 8, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,654/mt ($512.6/mt), increasing by RMB 108/mt ($15.2/mt) or up 3.05 percent since June 1, while increasing by 0.63 percent compared to the previous trading day (June 7).
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
893 |
23 |
125.8 |
2.5 |
|
Yandi fines |
58 / 59 |
735 |
12 |
103.6 |
1.1 |
|
PB Fines |
62 |
785 |
35 |
110.6 |
4.3 |
|
PB iron ore lump |
62/63 |
893 |
23 |
125.8 |
2.5 |
|
Brazil fines |
63 |
805 |
34 |
113.4 |
4.1 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
857 |
-4 |
121 |
-1 |
|
Beipiao |
791 |
-11 |
111 |
-3 |
Price includes VAT.
$1 = RMB 7.128