Iron ore price falls sharply again, closer to $100/mt CFR, amid poor demand

Import iron ore prices in China have moved down today, Thursday, September 16, compared to September 15, while indicating more than a $20/mt drop compared to the previous week, as demand has been very poor and the outlook has not improved.

Iron ore fines with 62 percent Fe content have edged up by $9.6/mt compared to September 15, to $104.1/mt CFR. This level is $25.15/mt below that seen a week ago on September 9. Brazilian iron ore with 65 percent Fe has moved down by $4.5/mt on September 16 compared to September 15, to $132.5/mt CFR, down $20/mt week on week, SteelOrbis has learned.

On September 16, a contract for 170,000 mt of ex-Brazil 65 percent Fe ore has been closed at the November index + $3.8/mt.

During the given week, import iron ore prices have moved down significantly amid the production restrictions in central China and Jiangsu Province, which has reduced demand from steelmakers. Moreover, a slowdown in crude steel output has been reported by NBS for August and by the CISA for early September. At the same time, typhoon Chanthu hit eastern China, resulting in construction activities halting in some provinces, also exerting a negative impact on the iron ore market. The delivery of iron ore from Australia and Brazil will likely increase in the near future, which will negatively affect the market from the supply side. However, some steelmakers may choose to build up stocks ahead of the Mid-Autumn Day (September 19-21) and National Day (October 1-7) holidays, which will bolster iron ore prices to some extent.

Iron ore futures prices at Dalian Commodity Exchange (main contract i2201) have moved down by 3.94 percent today to RMB 670.5/mt ($104/mt), while decreasing by RMB 59.5/mt ($9.25/mt) or 8.15 percent compared to September 9.

As of Thursday, September 16, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,541/mt ($861.3/mt), decreasing by RMB 141/mt ($22/mt) or 2.5 percent since September 9, while increasing by 0.84 percent compared to the previous trading day (September 15).

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.  

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT. 

$1 = RMB 6.433