Iron ore prices in China have moved down sharply over the past week amid slowdown of demand and pressure from the steel market.
Iron ore fines with 62 percent of Fe content has dropped by $2.2/mt over a day, coming to $107.6/mt CFR, which is also $5.2/mt below last week. At the same time, fines with 65 percent of Fe content have been priced at $121.9/mt CFR, down by $2.25/mt over a day and $5.8/mt over the week.
37 deals totaling 542,400 mt of iron ore have been signed at the Corex platform on May 21. In particular, 40,000 mt of 56.85 percent Fe fines reached RMB 652/mt ($95.3/mt), delivery at Changzhou port, 20,000 mt of 56.07 percent FeFMG ultra fines transacted at RMB 609/mt ($89/mt), delivery at Qingdao port, and 18,000 mt of 60.47 percent Fe fines dealt at RMB 776/mt ($113.5/mt), delivery at Tianjin port.
On May 21, Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) respectively stand at RMB 760/wmt and RMB 769/wmt, with USD/dmt equivalence standing at $104.07 and $104.65.
During the given week, import iron ore prices have moved on a downtrend amid the increasing delivery, especially from Brazil, resulting in the rising inventories at ports. Currently, the supply of high Fe content iron ore has been a bit tighter compared to other grades which have more than enough supplies. Especially as demand has copped after a peak earlier this month. Due to the downtrend in finished steel prices, steelmakers have been unwilling to conclude purchases for iron ore, exerting a negative impact on prices. The delivery of iron ore is likely to see further rises in the coming week, which will weaken the support to its prices. It is expected that iron ore prices in the Chinese market will continue the downtrend in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have declined by 1.07 percent today to RMB 789.5/mt ($115.4/mt) compared to the previous trading day, May 20, while declining by 3.4 percent compared to May 14.
As of May 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,175/mt ($478/mt), decreasing by RMB 80/mt ($11.7/mt) or 2.5 percent since May 14, while down 0.44 percent compared to the previous trading day, May 20.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 939 | -11 | 137.4 | -1.5 |
| Yandi fines | 58 / 59 | 756 | -23 | 110.6 | -3.3 |
| PB Fines | 62 | 770 | -23 | 112.7 | -3.3 |
| PB iron ore lump | 62/63 | 945 | -12 | 138.3 | -1.7 |
| Brazil fines | 63 | 831 | -18 | 121.6 | -2.5 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 879 | -14 | 129 | -2 |
| Beipiao | 848 | -5 | 124 | -1 |
Price includes VAT.
$1 = RMB 6.8349
