Iron ore prices in China have edged down slightly over the past week due to high supply and the expected decline in demand in June with some mills planning maintenance works, which will reduce iron ore consumption.
Iron ore fines with 62 percent of Fe content have dropped significantly today, June 4, by $2.2/mt compared to yesterday to $103.8/mt CFR, which is also down by $3/mt over the past week. At the same time, fines with 65 percent Fe content have settled at $118.05/mt CFR, losing $2.25/mt from the previous day and $3.15/mt over the past week.
32 deals totaling 537,200 mt of iron ore have been signed at the Corex platform on June 4, signaling that sales improved after the decline in prices. In particular, 80,000 mt of 60.5 percent Fe fines were sold at $99.3/mt, for delivery during the month of July, 45,000 mt of 55.88 percent Fe fines were transacted at RMB 554/mt ($81.2/mt), for delivery at Lanshan port, and 30,000 mt of 56.48 percent Fe FMG fines were sold at RMB 590/mt ($86.5/mt), for delivery at Beilun port.
On June 4, the Corex Iron Ore Portside Index (61% Fe Qingdao) and the Iron Ore Portside Index (61% Fe Caofeidian) stand at RMB 741/wmt and RMB 747/wmt, with the US$/dmt equivalents standing at $101.73 and $101.89.
During the given week, import iron ore prices have seen slight declines amid the increasing supply of seaborne ore. During the given period, molten iron output has increased, while steelmakers’ profitability has decreased slightly. The destocking of finished steel has slowed down due to the impact of the traditional off-season. As for the coming week, molten iron output is expected to decrease, while the inventory of iron ore may increase slightly. It is expected that iron ore prices in the Chinese market will indicate further slight declines in the coming week.
Among the important developments in the iron ore market this week is that China Mineral Resources Group (CMRG) ordered domestic steel producers to halt discussions for Fortescue's Fortune Fines which is a new product with Fe content of 55 percent. This may be used as leverage in negotiations for a long-term agreement with the miner.
Iron ore futures prices at Dalian Commodity Exchange have declined by 1.85 percent today to RMB 767.5/mt ($112.5/mt) compared to the previous trading day, June 3, while declining by 1.7 percent compared to May 28.
As of June 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,157/mt ($463/mt), increasing by RMB 12/mt ($1.8/mt) or 0.4 percent since May 28, while down 0.57 percent compared to the previous trading day, June 3.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 915 | -5 | 134.2 | -0.7 |
| Yandi fines | 58 / 59 | 736 | -5 | 107.9 | -0.7 |
| PB Fines | 62 | 750 | -5 | 110.0 | -0.7 |
| PB iron ore lump | 62/63 | 930 | -3 | 136.4 | -0.4 |
| Brazil fines | 63 | 825 | +3 | 121.0 | +0.5 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 884 | +6 | 130 | +1 |
| Beipiao | 848 | 0 | 124 | 0 |
Price includes VAT.
$1 = RMB 6.8203
