Iron ore prices in China have edged down over the past week due to the slowdown in demand, high inventories and the lack of such support from futures as had been seen in the previous week. But, in general, market sources do not expect much further decline in raw material prices.
Today, January 15, the price for ex-Australia iron ore fines with 62 percent Fe content has settled at $108.2/mt CFR, down by $0.9/mt from the previous day and down $1.7/mt over the past week. Fines with 65 percent Fe content are at $121.4/mt CFR, declining by $1/mt from yesterday and posting a $1.6/mt decrease from last week.
28 deals totaling 730,900 mt of iron ore have been signed at the Corex platform on January 15. In particular, 20,000 mt of 64.48 percent Fe Carajas fines were transacted at RMB 920/mt ($131.2/mt), for delivery at Tianjin port, 17,680 mt of 59.77 percent Fe SP10 lumps reached RMB 843/mt ($120.3/mt), for delivery at Jingtang port, and 15,000 mt of 62.18 percent Fe Newman screened ore were transacted at RMB 907/mt ($129.4/mt), for delivery at Tianjin port.
On January 15, Corex’s Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) stand at RMB 823/wmt and RMB 827/wmt, with the USD/dmt equivalents standing at $110.35 and $110.55.
Import iron ore prices moved up first, while edging down later in the given week amid the fluctuating trend in ferrous metal futures prices. Inventories of iron ore have been higher than market players’ expectations, exerting a negative impact on prices. Demand for finished steel remains slack during the traditional cold winter offseason, negatively affecting the iron ore market.
However, the PBOC has announced interest rate cuts for various structural monetary policy tools by 0.25 percentage points, with one-year re-lending rates for various categories reduced to 1.25 percent, and this is likely to bolster market sentiments in the near future. It is thought that import iron ore prices in the Chinese market will likely move sideways in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 1.03 percent today to RMB 813/mt ($116/mt) compared to the previous trading day, January 14, while remaining stable compared to January 8.
As of January 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,160/mt ($451/mt), decreasing by RMB 8/mt ($1.1/mt) or 0.25 percent since January 8, while down 0.13 percent compared to the previous trading day, January 14.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 887 | -2 | 126.5 | -0.1 |
| Yandi fines | 58 / 59 | 811 | -4 | 115.7 | -0.4 |
| PB Fines | 62 | 825 | -4 | 117.7 | -0.4 |
| PB iron ore lump | 62/63 | 891 | 0 | 127.1 | 0.2 |
| Brazil fines | 63 | 849 | -15 | 121.1 | -2.0 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 884 | -5 | 126 | -1 |
| Beipiao | 859 | 0 | 123 | 0 |
Price includes VAT.
$1 = RMB 7.0064
