Iron ore price retreats due to new output curbs after surge to almost $190/mt CFR this week

Thursday, 22 April 2021 16:48:31 (GMT+3)   |   Shanghai
       

Import iron ore prices in China have edged down today, Thursday, April 22, following a rising trend over the previous few days. New steel production restrictions in Handan Province have been announced, impacting expectations for iron ore demand in the near future. Nevertheless, at the moment import iron ore prices are still visibly higher than last week.

Iron ore fines with 62 percent Fe content have edged down by $3/mt today compared to April 21, to $182.5/mt CFR. However, this level is $5.5/mt above that seen a week ago on April 15. Brazilian iron ore with 65 percent Fe has edged down by $2/mt today to $218/mt CFR, but is up $6.9/mt week on week, SteelOrbis has learned.

On April 22, two deals were for 170,000 mt each of 62 percent PB fines and 61 percent PB fines have been done, the first at the June index + $6.8/mt and the second at $178.9/mt CFR. Also, 80,000 mt of Yandi fines have been sold at the May index -$6.9/mt.

During the given week, import iron ore prices edged up further amid the good profitability on the steelmakers’ side and reached a high of $188/mt CFR for 62 percent fines on April 20. Though demand for import iron ore has been good, the new production restriction policy in Handan in addition to those in Tangshan may exert a negative impact on the demand for iron ore, hitting sentiment. It is thought that import iron ore prices will remain at relatively high levels in the coming week as rebar prices are expected to be strong in China and they will provide support for iron ore.

Iron ore futures prices at Dalian Commodity Exchange have moved down by 0.46 percent today, coming to RMB 1,091.5/mt ($167.9/mt) compared to April 22, while rising by RMB 43/mt ($6.6/mt) or 4.1 percent compared to April 15.

As of Thursday, April 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,208/mt ($801/mt), increasing by RMB 101/mt ($15.5/mt) or 1.98 percent since April 15, while increasing by 0.97 percent compared to the previous trading day (April 21).

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

1,575

37

242.7

7.2

Yandi fines

58 / 59

1,060

50

163.3

8.7

PB Fines

62

1,239

63

190.9

10.8

PB iron ore lump

62/63

1,585

17

244.2

4.1

Brazil fines

63

1,308

70

201.5

12.0

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

1,222

91

188

15

Beipiao

1,068

51

165

9

Price includes VAT.

$1 = RMB 6.4902


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