Iron ore prices for China have edged down slightly today, January 16, compared to January 15, as mills have been finishing replenishment before the Chinese New Year holiday, though prices are higher compared to January 9. Iron ore fines with 62 percent Fe content have lost $0.3/mt today to $94.9/mt CFR, while Brazilian iron ore with 65 percent Fe content has also lost $0.3/mt, declining to $108.8/mt CFR, SteelOrbis has learned.
One deal for 90,000 mt of 62.4 percent Fe Newman fines has been concluded on January 16, at the February index +$0.5/mt, for shipment from February 15 to 29. Another deal for 170,000 mt of 62.0 percent Fe content Brazilian Blend fines has been concluded on January 16 at the price of $97.2/mt CFR for shipment during February 19-28. Nevertheless, such a higher-priced deal does not reflect the actual market conditions. A contract for 80,000 mt of Newman fines (Fe 62 percent or higher) has been done at GlobalOre at $93.7/mt CFR for shipment in late February- early March.
A deal for 100,000 mt of 59.5 percent Fe Jimblebar Blend fines has been concluded on January 16, at the March index a the discount of $8.7/mt, for delivery in March 2020. Yandi fines have been sold at GlobalOre at a price based on the March index with a discount of $5.9/mt.
During the given week, import iron ore prices have edged up due to stock replenishment by steelmakers. Iron ore shipments from Australia and Brazil have been negatively affected by bad weather conditions. Since the Chinese New Year holiday is drawing closer, steelmakers’ stock replenishment is starting to slow, which has exerted a negative impact on iron ore transaction activities at ports. Traders are bullish as regards the future prospects for the market after the long holiday.
Iron ore futures prices at Dalian Commodity Exchange have lost RMB 8.0/mt ($1.2/mt) or 1.2 percent today, coming to RMB 658.5/mt ($95.7/mt) compared to January 15, while rising by 0.23 percent compared to January 9.
China’s largest private steelmaker, Jiangsu Province-based Shagang Group, has cut its offer prices for high-speed wire rod, rebar and bar-in-coil by RMB 80/mt ($11.6/mt) for January 11-20, signaling its negative view of the prospects for the market, though production halts ahead of the Chinese New Year holiday, especially amid atmospheric pollution in northern China, will prevent local steel prices from recording any sharp decline in the near future.
Rebar futures at Shanghai Future Exchange have risen by RMB 9/mt ($1.3/mt) or 0.25 percent on Thursday, January 16, compared to the previous trading day, while increasing by RMB 10/mt ($1.5/mt) or 0.3 percent since January 9.