Over the past week China's domestic iron ore market has continued its upward movement, accompanied by relatively brisk commercial activity. Looking at the current situation, iron ore demand in China will continue to rise on the back of increasing domestic crude steel production.
Product name | Specification | Average price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Iron ore concentrate | damp base (iron content: 66 percent) | 620 | 91 | + 20 |
India fine ore | 63.5 percent | 750 | 110 | + 20 |
In the past week, the international shipping freight market registered a strong increase. On November 5, the Baltic Dry Index (BDI) closed at 3,295 points, up 309 points compared with the level on October 29. On November 5, the average freight charge from Brazil to Beilun Port in China was $35.90/mt, up by $4.82/mt week on week. Meanwhile, the average freight rate from Western Australia to Beilun on November 5 was $14.39/mt, a rise of of $2.68/mt week on week.
Iron ore prices in the Chinese market still retained their climbing trend during the past week. At present, the price of 66 percent damp base iron ore in Tangshan, Hebei Province is at the level of RMB 620/mt ($91/mt, tax excluded), while the market prices in the northeastern regions stand at RMB 520/mt ($76/mt, damp base/tax excluded), both up by RMB 20/mt ($3/mt) week on week. Meanwhile, the prices of 63.5 percent Indian fine ore have risen by $2/mt to $78/mt FOB, while the CFR price (Tianjin Port) is up by $3/mt to $97/mt. Additionally, the price quotation of 63.5 percent Indian ore is now at RMB 750/mt ($110/mt) at Chinese ports, up RMB 20/mt ($3/mt) week on week, while the deal price of 62.5 percent Australian PB fines is up by RMB 10/mt ($1/mt) week on week to RMB 740/mt ($109/mt), with the market price of 65 percent Brazilian fine ore standing at RMB 780/mt ($114/mt), up by RMB 20/mt ($3/mt) week on week.
The imported ore market in China moved up by a small margin in the past week, against the background of the continuing strength of market demand. Despite the overall bearish steel market, Chinese mills still have not shown any sign of reducing or suspending their production, with crude steel outputs continuing to remain at high levels. In this context, market demand for both domestic and imported ores appears very strong, leading to an active trading performance in recent days. While fluctuations have been observed in the domestic steel market, the domestic iron ore market has remained on its rising trend over the past week, with spot ore prices at the ports up by RMB 20/mt ($3/mt) week on week. According to the current situation, iron ore prices in China are expected to climb up further in the short term against the background of brisk market demand.