Import iron ore prices in China improve after losses early this week

Import iron ore prices in China have indicated an uptrend today, Thursday, October 12, after iron ore futures prices rose by 1.64 percent on the same day. Some hopes for additional stimulus measures from the Chinese government to support the struggling property market have been behind the increase seen over the past couple of days, though the overall outlook for iron ore demand and prices is very far from being bright for the near future.    

Iron ore fines with 62 percent Fe content have risen by $1.9/mt today to $118.1/mt CFR. This level is still $1.15/mt below that seen before the long holiday on September 28. Brazilian iron ore with 65 percent Fe has indicated an increase of $2.05/mt on October 12 to $127.25/mt CFR, while up $0.55/mt week on week, SteelOrbis has learned.  

Four deals for 130,000 mt in total have been concluded at Corex today, including 80,000 mt of 60.8 percent Mac fines transacted at $115/mt CFR for shipment during November 1-10.  

In the first part of the past week, iron ore futures prices moved down, though indicating an uptrend since October 11. The apparent consumption of finished steel decreased in the given period due to the long National Day holiday, which also signals a weakening trend for the remainder of the current year. Steelmakers may step up their maintenance works, which may bolster steel prices, while slackening the demand for iron ore. The iron ore arriving at ports may decline in the coming week, which will reduce supply and provide some support for prices. Steelmakers will be unwilling to produce due to their increasing losses, which will exert a negative impact on the iron ore market. It is expected that import iron ore prices may fluctuate within a limited range in the coming week.   

Iron ore futures prices at Dalian Commodity Exchange have risen by 1.64 percent to RMB 837/mt ($117/mt) compared to the previous trading day (October 11), while decreasing by RMB 15/mt ($2.1/mt) compared to September 28.   

As of Thursday, October 12, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,627/mt ($505/mt), decreasing by RMB 63/mt ($8.8/mt) or down 1.7 percent since September 28, while increasing by 0.3 percent compared to the previous trading day (October 11).  

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 7.1776