Import iron ore prices in China have moved up today, Thursday, June 3, while indicating big rises compared to May 27 supported by the rebound in the steel market and the better outlook for iron ore consumption in June amid relaxed production restrictions.
Iron ore fines with 62 percent Fe content have edged up by $2.25/mt compared to June 2, to $210.45/mt CFR. This level is $22.95/mt above that seen a week ago on May 27. Brazilian iron ore with 65 percent Fe has seen a rise of $1.05/mt today to $241.05/mt CFR, up $20.55/mt week on week, SteelOrbis has learned.
On June 3, a deal for 90,000 mt of 63 percent Newman blended lumps was done at the July index with a premium of $0.69/mt. In addition, a cargo of 170,000 mt of ex-Brazil 65 percent Fe fines has been traded at the July index + $10.6/mt.
During the given week, import iron ore prices have increased compared to the previous week, supported by the rebound in the steel market. As of Thursday, June 3, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,148/mt ($907/mt), increasing by RMB 331/mt ($52/mt) or 6.9 percent since May 27, while increasing by 1.72 percent compared to the previous trading day (June 2).
Since steelmakers had not built up iron ore stocks previously amid the declining trend, their inventories have been low, and so they have had to conclude purchases, exerting a positive impact on iron ore prices. Traders are optimistic as regards the market prospects, and this has bolstered iron ore prices.
In addition, higher iron ore prices this week have been supported by the better outlook for consumption in June amid hopes based on the easing of BOF production restriction in Tangshan. As a result, even despite the approaching rainy season, iron ore prices have been fluctuating at higher levels above $200/mt CFR again.
Iron ore futures prices at Dalian Commodity Exchange have moved up by 1.88 percent today, coming to RMB 1194/mt ($187/mt) compared to June 2, while rising by RMB 147.5/mt ($23.0/mt) or 14.1 percent compared to May 27.
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
1,790 |
145 |
280.5 |
23.6 |
|
Yandi fines |
58 / 59 |
1,178 |
163 |
184.6 |
26.1 |
|
PB Fines |
62 |
1,425 |
147 |
223.3 |
23.7 |
|
PB iron ore lump |
62/63 |
1,845 |
145 |
289.1 |
23.6 |
|
Brazil fines |
63 |
1,520 |
172 |
238.2 |
27.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
1,310 |
36 |
205 |
6 |
|
Beipiao |
1,276 |
-12 |
200 |
-1 |
Price includes VAT.
$1 = RMB 6.3811