Iron ore prices in China have indicated slight decreases in the past week amid the sluggish demand for finished steel due to the continuous rainy weather, which has been affecting construction activities. The outlook for the short term is also negative.
On June 12, prices for ex-Australia iron ore fines with 62 percent Fe content are at $94.75/mt CFR, down by $0.75/mt from the previous day, while down by $0.45/mt over the past week. Also, ex-Brazil fines with 65 percent Fe are priced at $104.45/mt CFR, down $0.65/mt from the previous day, but $0.3/mt lower compared to June 5.
19 deals totaling 232,100 mt of iron ore have been signed at the Corex platform on June 12. In particular, 150,000 mt of 65 percent Fe Venezuelan pellets were transacted at the July 65 percent iron ore index + $7/mt, while 7,000 mt of 61.49 percent Fe fines were sold at RMB 735/mt ($102.1/mt), for delivery at Tianjin port.
During the given week, import iron ore prices have edged down amid the traditional offseason for the steel industry. Molten iron output has declined, exerting a negative impact on the demand for iron ore. At the same time, the shipment of seaborne iron ore and the iron ore volume arriving at the ports have increased, standing at the highest level in the same period over the past three years, negatively affecting prices. Demand for steel is anticipated to remain sluggish in the near future amid the widespread rainy weather and weak construction activities, which will slacken the demand for iron ore. Accordingly, it is expected that import iron ore prices in the Chinese market will move down in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 0.21 percent today to RMB 704/mt ($97.8/mt) compared to the previous trading day, June 11, while increasing by 0.4 percent compared to June 5.
As of June 12, rebar futures at Shanghai Futures Exchange are standing at RMB 2,968/mt ($412/mt), increasing by RMB 9/mt ($1.3/mt) or 0.3 percent since June 5, while down 0.7 percent compared to the previous trading day, June 11.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 855 | -9 | 119.1 | -1.1 |
| Yandi fines | 58 / 59 | 697 | -9 | 97.1 | -1.2 |
| PB Fines | 62 | 724 | -9 | 100.8 | -1.2 |
| PB iron ore lump | 62/63 | 872 | -6 | 121.4 | -0.7 |
| Brazil fines | 63 | 742 | -12 | 103.3 | -1.6 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 816 | -7 | 114 | -1 |
| Beipiao | 785 | 0 | 109 | 0 |
Price includes VAT.
$1 = RMB 7.1803