Iron ore prices in China have decreased slightly over the past few days, reacting to higher supply and lower crude steel production due to maintenance works at mills. But the decline has been rather small so far, especially after the previous rises. Amid the current fundamentals, iron ore prices should go down further, market sources believe, though stable to firm steel prices in China may hinder any significant drop in iron ore prices.
On December 4, the price for ex-Australia iron ore fines with 62 percent Fe content has been at $106.15/mt CFR, down by $0.5/mt from the previous day, while also $0.55/mt lower than last week. Fines with 65 percent Fe content have been priced at $118.8/mt CFR, down by $0.4/mt from the previous day and down $0.3/mt over the past week.
30 deals totaling 564,600 mt of iron ore have been signed at the Corex platform on December 4. In particular, 11,300 mt of 60.17 percent Fe Mac fines were transacted at RMB 793/mt ($112.2/mt), for delivery at Tianjin port, and 7,440 mt of 60.8 percent Fe Newman fines were transacted at RMB 800/mt ($113.2/mt), for delivery at Tianjin port.
On December 4, Corex’s Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) stand at RMB 792/wmt and RMB 803/wmt, with the USD/dmt equivalents standing at $104.49 and $105.64, respectively.
In the first part of the past week, import iron ore prices in the Chinese market edged up first, while moving down over the past few days as some steelmakers issued maintenance plans, signaling an imminent decrease in molten iron output. Market sentiments have weakened, dragging down iron ore prices. Iron ore volumes arriving at ports have increased significantly compared to the previous week, weakening the support for prices. Inventories of iron ore are expected to increase in the near future amid anticipated declines in molten iron output. It is thought that import iron ore prices will likely soften in the coming week
Iron ore futures prices at Dalian Commodity Exchange have decreased by 0.63 percent today to RMB 794.5/mt ($112.4/mt) compared to the previous trading day, December 3, while decreasing by 0.6 percent compared to November 27.
As of December 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,175/mt ($449/mt), increasing by RMB 82/mt ($11.6/mt) or 2.65 percent since November 27, while up 0.35 percent compared to the previous trading day, December 3.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 864 | -5 | 122.2 | -0.6 |
| Yandi fines | 58 / 59 | 780 | -2 | 110.3 | -0.2 |
| PB Fines | 62 | 794 | -2 | 112.3 | -0.2 |
| PB iron ore lump | 62/63 | 872 | -1 | 123.3 | -0.1 |
| Brazil fines | 63 | 829 | -7 | 117.2 | -0.9 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 906 | -7 | 128 | -1 |
| Beipiao | 859 | 6 | 121 | 1 |
Price includes VAT.
$1 = RMB 7.0733
