Iron ore prices in China have moved down over the past week, with the largest drop occurring today after China's Politburo announced insufficient supportive measures. Meanwhile, market fundamentals have remained bearish due to ample supply and negative profitability of mills in China.
The price for iron ore fines with 62 percent Fe content has dropped by $2.2/mt over the past day to $96.6/mt CFR, which is also $2.55/mt below the level seen a week ago. Prices of fines with 65 percent Fe content have been at $111.5/mt CFR, dropping by $2/mt over the past day and $1.5/mt over the week.
29 deals totaling 763,600 mt of iron ore were concluded on the Corex platform on July 30, signaling somewhat better demand after the price decline. In particular, 170,000 mt of 61 percent Fe PB fines were traded at $95/mt CFR for shipment during September 7-16, another 170,000 mt of 61 percent Fe PB fines were transacted at $94.7/mt CFR for shipment during September 6-15, and 40,535 mt of 56.67 percent Fe fines were dealt at RMB 548/mt ($80.7/mt), delivery at Lanqiao port.
On July 30, Corex's Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 677/wmt and RMB 686/wmt, with USD/dmt equivalence standing at $92.88 and $93.46.
The major reason for today's iron ore price drop has been bearish sentiment, reflected in futures, and the lack of sufficient policy support announced during China's Politburo meeting.
More importantly, over the past week import iron ore prices have edged down amid increasing global shipments and port arrivals. Higher crude oil prices resulting from the US-Iran conflict have pushed up freight costs, giving iron ore some cost support and keeping prices from falling even further for now. Global iron ore shipments are expected to increase further, which will result in rising inventories and weaken price support. It is expected that iron ore prices in the Chinese market will continue to trend slightly lower in the coming week.
Iron ore futures prices at the Dalian Commodity Exchange have declined by 3.31 percent today to RMB 715/mt ($105.3/mt) compared to the previous trading day, July 29, while decreasing by 4.3 percent compared to July 23.
As of July 30, rebar futures at the Shanghai Futures Exchange stand at RMB 3,014/mt ($444/mt), decreasing by RMB 71/mt ($10.5/mt), or 2.3 percent, since July 23, while down 1.73 percent compared to the previous trading day, July 29.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 877 | -12 | 129.2 | -1.7 |
| Yandi fines | 58 / 59 | 671 | -13 | 98.8 | -1.9 |
| PB Fines | 62 | 685 | -13 | 100.9 | -1.9 |
| PB iron ore lump | 62/63 | 882 | -16 | 129.9 | -2.3 |
| Brazil fines | 63 | 742 | -17 | 109.3 | -2.5 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 878 | 0 | 129 | 0 |
| Beipiao | 836 | -6 | 123 | -1 |
Price includes VAT.
$1 = RMB 6.7892
