Iron ore prices in China have edged up slightly in the past week amid increasing futures and still strong coke and coking coal prices in China, while demand for September shipments of iron ore has also been firm despite the current slowdown in consumption by mills due to production cuts. But further upward movements in the iron ore market are doubtful and market sources believe in some slight negative correction in the near future.
On August 7, prices for ex-Australia iron ore fines with 62 percent Fe content are at $100.95/mt CFR, increasing by $0.35/mt from the previous day, while up by $2.45/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $119.6/mt CFR, up $0.3/mt from the previous day, but $5.4/mt higher compared to July 31.
18 deals totaling 766,000 mt of iron ore have been signed at the Corex platform on August 7. In particular, two contracts for 170,000 mt of 61 percent Fe PB fines each were signed at $99.08/mt CFR for shipment during September 16-25 and at $99.17/mt CFR for September 15-24 shipment. Also, 90,000 mt of 62 percent Fe PB lump were sold at $113.8/mt CFR for first half of September shipment, and 80,000 mt of 62 percent Fe PB lump were transacted at a price based on the September fines index with extras.
Finished steel production has slowed down, exerting a negative impact on demand for iron ore. Meanwhile, heavy rains in northern China have curbed the demand for steel, weakening the support for the iron ore market. So, it is thought that import iron ore prices will likely edge down in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 0.25 percent today to RMB 793/mt ($111/mt) compared to the previous trading day, August 6, while increasing by 1.8 percent compared to July 31.
As of August 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,231/mt ($453/mt), increasing by RMB 26/mt ($3.6/mt) or 0.8 percent since July 31, while up 0.03 percent compared to the previous trading day, August 6.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 900 | 2 | 126.1 | 0.5 |
| Yandi fines | 58 / 59 | 747 | 2 | 104.7 | 0.5 |
| PB Fines | 62 | 774 | 2 | 108.5 | 0.5 |
| PB iron ore lump | 62/63 | 924 | 10 | 129.5 | 1.7 |
| Brazil fines | 63 | 801 | -1 | 112.3 | 0.1 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 857 | 23 | 120 | 3 |
| Beipiao | 802 | 0 | 112 | 0 |
Price includes VAT.
$1 = RMB 7.1345