Prices for imported iron ore and major raw materials and steel futures have posted visible decline on May 24. Iron ore spot prices have fallen below a $100/mt CFR mark, last seen in November 2022, taking into account weak demand for steel, reduced production and expectations that the market will remain muted in the coming months.
Iron ore fines with 62 percent Fe have dropped by $4.9/mt over a day to $97/mt CFR today, while ex-Brazil 65 percent Fe fines have been settled at $111.75/mt CFR, down by $5.1/mt over a day.
A contract for 80,000 mt of 62.7 percent Fe Newman lumps has been done at July index +$0.1325/mt today. Overall trading has improved after prices slipped, but in general demand has been limited and market sources are pessimistic about the developments in June. Market sources said that demand for iron ore in May from China was slower compared to April. Easing of monetary policy expected in May didn’t happen as on Monday, China’s authorities decided to keep benchmark lending rates unchanged.
Moreover, depreciation of RMB has been impacting the import iron ore market with more and more declines expected by mills.
The June futures for iron ore at the Singapore Exchange has come to $95.1/mt CFR, down by $4.88/mt over a day. At the Dalian Commodity Exchange, rebar futures have lost 3.51 percent, while iron ore – 4.61 percent today.