Iron ore prices in China have been edging down slightly over the past week, but prices have rebounded today, August 6, amid hikes in futures prices after rumors emerged that China may limit purchases from major Australian iron ore supplier Rio Tinto. The overall fundamentals are still bearish, but the market is watching the supply side and iron ore prices will move accordingly.
The price for iron ore fines with 62 percent Fe content has rebounded by $2.3/mt compared to yesterday to $97.5/mt CFR, which is also $0.9/mt higher week on week. Prices of fines with 65 percent Fe content stand at $112.8/mt CFR, up by $1.9/mt from August 5 and up $1.3/mt over the past week.
42 deals totaling 531,500 mt of iron ore have been signed at the Corex platform on August 6. In particular, 80,000 mt of 60.5 percent Fe Mac fines were sold at $95.5/mt CFR for shipment during September 9-18, and 85,000 mt of 62 percent Fe BRBF fines were transacted at the September 62 percent index for shipment during September 3-12.
On August 6, Corex's Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 680/wmt and RMB 691/wmt, with the US$/dmt equivalents standing at $93.4 and $94.27.
China Mineral Resources Group (CMRG) has asked a number of mills to halt negotiations with Rio Tinto, according to market sources, though no details are available for now about the brands that may be banned, while China and the miner are in negotiations on annual agreements.
During the given week, import iron ore prices have edged down slightly amid the ongoing slack demand for finished steel, which has resulted in sluggish demand for iron ore as well. Delivery of iron ore and arrivals at ports have decreased in the given week, providing support for prices. Inventories of finished steel have indicated slight rises. The production of molten iron in China is expected to rise next week, which will exert a positive impact on the demand for iron ore.
Iron ore futures prices at Dalian Commodity Exchange have risen by 2.57 percent on August 6 to RMB 719/mt ($106mt), compared to the previous trading day, August 5, while increasing by 0.56 percent compared to July 30.
As of August 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,014/mt ($444/mt), remaining stable since July 30, while up 0.97 percent compared to the previous trading day, August 5.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 872 | -5 | 128.4 | -0.8 |
| Yandi fines | 58 / 59 | 663 | -8 | 97.6 | -1.2 |
| PB Fines | 62 | 677 | -8 | 99.7 | -1.2 |
| PB iron ore lump | 62/63 | 874 | -8 | 128.7 | -1.2 |
| Brazil fines | 63 | 735 | -7 | 108.2 | -1.0 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 851 | -27 | 125 | -4 |
| Beipiao | 831 | -5 | 122 | -1 |
Price includes VAT.
$1 = RMB 6.7895
