Gradual iron ore price increase followed by significant drop today

Import iron ore prices in China have indicated an overall downtrend today, Thursday, September 21, and, as a result, over the past week too, falling below the $120/mt CFR mark for the first time since September 10.

Iron ore fines with 62 percent Fe content have decreased by $4.75/mt today to $119.5/mt CFR. This level is $3.4/mt below that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a decline of $4.65/mt on September 21 to $127.5/mt CFR, while down $3.85/mt week on week, SteelOrbis has learned.

22 deals for a total of 819,500 mt have been concluded at the Corex platform today, including 170,000 mt of 62.0 percent PB fines traded at the November index + $3.75/mt, for shipment during November 6-15, and 170,000 mt of 62.0 percent PB fines at the November index + $3.7/mt, for shipment during November 5-14.

Import iron ore prices in the Chinese market edged up first in the past week, while moving down later. The rises in import iron ore prices have been faster than in finished steel prices. On September 15, the People’s Bank of China (PBOC) cut the required reserve ratio (RRR) for financial institutions by 0.25 percentage points (excluding those that have already implemented an RRR of five percent), which will exert a positive impact on economic development. However, more blast furnaces have started to implement maintenance works in the given week, reducing molten iron output and negatively affecting iron ore prices. Currently, since the long National Day holiday (September 29-October 6) is approaching, market players anticipate there will be stock replenishments, but this may not be a very strong factor for prices to rise as steelmakers may reduce their outputs due to poor profitability. It is thought that import iron ore prices in the Chinese market may fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have declined by 1.9 percent to RMB 854/mt ($119/mt) compared to the previous trading day (September 20), while decreasing by RMB 9.5/mt ($1.3/mt) compared to September 14.

As of Thursday, September 21, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,762/mt ($525/mt), decreasing by RMB 32/mt ($4.5/mt) or down 0.84 percent since September 14, while decreasing by 2.01 percent compared to the previous trading day (September 20).

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 7.173