Iron ore prices in China have seen gradual increases over the past week and especially today, March 13, mainly amid expectations of firm demand for steel in March and April and the rebound in production from mid-March after some output limitations during the Two Sessions meetings. However, the lack of concrete stimuli and serious tariff issues have limited the rising mood in the iron ore market, as well as ongoing talk that China may resume mandatory steel production cuts this year.
On March 13, prices for ex-Australia iron ore fines with 62 percent Fe content are at $103.15/mt, up $1.8/mt from yesterday, while up $2.55/mt week on week. Also, ex-Brazil fines with 65 percent Fe are priced at $117.15/mt CFR, increasing by $1.85/mt from yesterday, while up $2.65/mt over the past week.
In particular, 34 deals of for a total of 435,400 mt of iron ore have been done at the Corex platform on March 13, including 100,000 mt of 60.6 percent Fe Mac fines transacted at $97.3/mt CFR, for shipment during April 11-20. Also, 20,000 mt of 61.78 percent Fe PB fines have been traded at RMB 773/mt ($108/mt), for delivery at Qianwan port.
During the given week, import iron ore prices in the Chinese market have fluctuated within a limited range as no stimulus policies have exceeded market expectations. The finished steel market is in its seasonal destocking phase, which will exert a positive impact on the demand for iron ore and bolster its prices. The delivery of iron ore will decrease slightly in the coming period, while molten iron output is expected to increase, which will provide solid support for iron ore prices. At the same time, the People’s Bank of China (PBOC) announced on March 13 that it would cut interest rates and the reserve ratio at the right moment, which will positively affect market sentiments. It is expected that import iron ore prices will likely follow a further gradually increasing trend in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have increased by 0.45 percent today to RMB 780/mt ($109/mt) compared to the previous trading day, March 12, while also increasing by RMB 7/mt ($1/mt) compared to March 6.
As of March 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,256/mt ($458/mt), decreasing by RMB 26/mt ($6.6/mt) or 0.8 percent since March 6, while up 1.21 percent compared to the previous trading day, March 12.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) | Change (RMB/mt) | Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 896 | -1 | 124.9 | -0.2 |
| Yandi fines | 58/59 | 746 | -3 | 104.0 | -0.5 |
| PB Fines | 62 | 775 | -3 | 108.0 | -0.5 |
| PB iron ore lump | 62/63 | 907 | 0 | 126.4 | -0.1 |
| Brazil fines | 63 | 784 | -5 | 109.3 | -0.8 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price (RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price ($/mt) | Change ($/mt) |
| Tangshan | 864 | +2 | 120 | 0 |
| Beipiao | 825 | 0 | 115 | 0 |
Price includes VAT.
$1 = RMB 7.1728