Iron ore prices in China have moved up in the past week amid rising futures and sentiments in the steel market. Even though the recent production cuts in China had impact on iron ore consumption, sentiments and expectations have been more important for the raw materials market, bolstering demand.
On July 17, prices for ex-Australia iron ore fines with 62 percent Fe content are at $100.05/mt CFR, up by $1.1/mt from the previous day, while up by $1.7/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $115.6/mt CFR, up $1/mt from the previous day, but $6.3/mt higher compared to July 10.
Demand has been stronger as Chinese mills have better hopes for the steel sales and prices in September. 21 deals totaling 860,000 mt of iron ore have been signed at the Corex platform on July 17. In particular, two deals for 170,000 mt 61 percent of Fe PB fines each were done at $98.1/mt CFR and $97.6/mt CFR for shipment during August 11-20. In addition, 170,000 mt of 62 percent Fe BRBF fines were sold at $102.45/mt CFR for shipment during August 22-31, and 90,000 mt Fe Newman fines were traded at $97.7/mt CFR.
During the given week, iron ore prices in the Chinese market have moved up amid the resistance against excessive competition in the steel market. Iron ore futures prices have seen an uptrend, also bolstering iron ore prices in the spot market. The shipment of seaborne iron ore is expected to decrease next week, while the molten iron output is expected to fluctuate within a limited range, which will exert a positive impact on iron ore prices. It is expected that import iron ore prices may move sideways at current high levels in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have increased by 1.81 percent today to RMB 785.5/mt ($106.8/mt) compared to the previous trading day, July 16, while increasing by 2.9 percent compared to July 10.
As of July 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,133/mt ($438/mt), increasing by RMB 10/mt ($1.4/mt) or 0.3 percent since July 10, while up 0.8 percent compared to the previous trading day, July 16.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 898 | 35 | 125.7 | 5.0 |
| Yandi fines | 58 / 59 | 741 | 30 | 103.7 | 4.3 |
| PB Fines | 62 | 768 | 30 | 107.5 | 4.3 |
| PB iron ore lump | 62/63 | 922 | 37 | 129.0 | 5.3 |
| Brazil fines | 63 | 799 | 30 | 111.8 | 4.3 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 799 | 22 | 112 | 3 |
| Beipiao | 785 | 5 | 110 | 1 |
Price includes VAT.
$1 = RMB 7.1461
