Iron ore prices in China have indicated further increases in the past week amid rising futures, stronger steel prices in China and increased demand for the raw material with September arrival.
On July 24, the price for ex-Australia iron ore fines with 62 percent Fe content was at $104.05/mt CFR, up by $0.55/mt from the previous day, while up by $4/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $119.25/mt CFR, up $0.65/mt from the previous day, and $3.65/mt higher compared to July 17.
31 deals for a total of 1.1613 million mt of iron ore have been signed at the Corex platform on July 24. The volume signals very strong demand for September delivery iron ore. In particular, four deals for 170,000 mt of 61 percent Fe PB fines each were signed at $102.08/mt CFR, $101.98/mt CFR, $101.94/mt CFR and $101.93/mt CFR, respectively, all for late August-early September laycan.
During the given week, import iron ore prices have edged up given the support from the government statement urging the curbing of excessive competition in the steel sector. Market sentiments have improved, exerting a positive impact on finished steel prices, and thereby also bolstering iron ore prices.
Inventory at Chinese ports may be consumed and decrease, which would positively affect prices. In mid-July, they have already hit 131.9 million mt, while during most of last year they were at 140-150 million mt. At the same time, shipments of iron ore may increase in the coming week, and the recent supply figures from Vale and Fortescue have already confirmed some improvement in production in the second quarter.
It is thought that import iron ore prices may fluctuate within a limited range in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 0.55 percent today to RMB 811/mt ($113.6/mt) compared to the previous trading day, July 23, while increasing by 3.2 percent compared to July 17.
As of July 24, rebar futures at Shanghai Futures Exchange are standing at RMB 3,294/mt ($438/mt), increasing by RMB 161/mt ($22.5/mt) or 5.1 percent since July 17, while up 0.34 percent compared to the previous trading day, July 23.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 923 | 25 | 129.3 | 3.6 |
| Yandi fines | 58 / 59 | 759 | 18 | 106.3 | 2.6 |
| PB Fines | 62 | 786 | 18 | 110.1 | 2.6 |
| PB iron ore lump | 62/63 | 942 | 20 | 132.0 | 2.9 |
| Brazil fines | 63 | 817 | 18 | 114.4 | 2.6 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 845 | 46 | 118 | 7 |
| Beipiao | 802 | 17 | 112 | 2 |
Price includes VAT.
$1 = RMB 7.1385
