Iron ore prices in China have indicated significant rises in the past week, despite some softening seen today, on May 15. On May 12, the US-China trade negotiations made substantial progress, positively affecting market sentiments, though further rises are doubtful amid possible steel production cuts.
On May 15, prices for ex-Australia iron ore fines with 62 percent Fe content are at $101.8/mt CFR, down by $0.65/mt from the previous day, while up by $4.35/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $112.95/mt CFR, $0.75/mt lower than on May 14, but $4/mt higher compared to May 8.
18 deals totaling 368,400 mt of iron ore have been signed at the Corex platform on May 15. In particular, 170,000 mt of 62 percent Fe BRBF fines were transacted at $101.35/mt CFR for shipment during June 10-19, while 90,000 mt of 60.6 percent Fe Mac fines were traded at $96.7/mt CFR for shipment during June 16-25. Also, 20,000 mt of 62.37 percent Fe Newman blended lumps were sold at RMB 910/mt ($126.4/mt), for delivery at Jingtang port.
During the given week, import iron ore prices have increased amid the easing of the trade situation due to the substantial progress made in US-China trade negotiations. As of May 15, the reserve requirement ratio (RRR) cut for Chinese banks by 0.5 percentage points has become effective, also bolstering market sentiments. However, market players have gradually focused on the actual demand from downstream users, while molten iron outputs may have peaked, signaling that demand for iron ore might decrease, which would negatively affect iron ore prices. More mills have announced maintenance works to be held in June, so, after the peak production levels in March and April, the situation may change. It is expected that import iron ore prices in the Chinese market will edge down in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have risen by 1.17 percent today to RMB 736.5/mt ($103.3/mt) compared to the previous trading day, May 14, while increasing by 6.2 percent compared to May 8.
As of May 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,118/mt ($433/mt), increasing by RMB 66/mt ($9.2/mt) or 2.2 percent since May 8, while up 0.39 percent compared to the previous trading day, May 14.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 904 | 15 | 125.6 | 2.3 |
| Yandi fines | 58 / 59 | 749 | 18 | 104.1 | 2.7 |
| PB Fines | 62 | 778 | 18 | 108.1 | 2.7 |
| PB iron ore lump | 62/63 | 920 | 19 | 127.8 | 2.8 |
| Brazil fines | 63 | 789 | 18 | 109.6 | 2.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 850 | 8 | 118 | 1 |
| Beipiao | 802 | 0 | 111 | 0 |
Price includes VAT.
$1 = RMB 7.1963