Iron ore prices in China have dropped this week, again crossing a $100/mt CFR line, as previous supporting factors have eased, while steel demand has weakened and fundamentals in general have not been looking that bright.
On July 31, prices for ex-Australia iron ore fines with 62 percent Fe content are at $98.5/mt CFR, down by $1.95/mt from the previous day, while down by $5.55/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $114.2/mt CFR, down $1.7/mt from the previous day, but $5.05/mt lower compared to July 24.
15 deals totaling 477,200 mt of iron ore were signed at the Corex platform on July 31. In particular, two contracts for 170,000 mt of 61 percent Fe PB fines each were signed at $96.52/mt CFR and $96.67/mt CFR for shipment during September 3-12 and September 2-11, respectively. Also, 20,405 mt of 64.66 percent Fe pellet were traded at RMB 930/mt ($130/mt), delivery at Rizhao port.
Import iron ore prices moved up first, while edging down later this week due to the sharp decreases in ferrous metal futures prices seen on July 31. High temperature and heavy rains exerted a negative impact on manufacturing and construction activities, weakening the demand for steel, which negatively affected the iron ore market. Speculative sentiments (especially triggered by too sharp rises in coking coal futures seen since last week) cooled down as positive impact from policy side has dissipated gradually. Transaction activities for finished steel decreased, slackening the demand for iron ore. It is expected that import iron ore prices might see further declines in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 2.38 percent today to RMB 779/mt ($109/mt) compared to the previous trading day, July 30, while decreasing by 3.9 percent compared to July 24.
As of July 31, rebar futures at Shanghai Futures Exchange are standing at RMB 3,205/mt ($448/mt), decreasing by RMB 89/mt ($12.4/mt) or 2.7 percent since July 24, while down 4.19 percent compared to the previous trading day, July 30.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 898 | -25 | 125.6 | -3.7 |
| Yandi fines | 58 / 59 | 745 | -14 | 104.2 | -2.1 |
| PB Fines | 62 | 772 | -14 | 108.0 | -2.1 |
| PB iron ore lump | 62/63 | 914 | -28 | 127.9 | -4.1 |
| Brazil fines | 63 | 802 | -15 | 112.2 | -2.3 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 834 | -11 | 117 | -2 |
| Beipiao | 802 | 0 | 112 | 0 |
Price includes VAT.
$1 = RMB 7.1494
