Import iron ore prices in China have moved up today, Thursday, May 27 compared to May 26, while indicating big declines compared to last week as the government has announced plans to tackle the sharp rises in commodity prices and speculation. The market should find more stability next week, market sources believe, but demand for iron ore is likely to remain limited, impacted by the slowdown in the construction steel market.
Iron ore fines with 62 percent Fe content have increased by $9.9/mt compared to May 26, to $187.5/mt CFR. However, this level is $20.8/mt below that seen a week ago on May 20. Brazilian iron ore with 65 percent Fe has seen a rise of $5.9/mt today to $220.5/mt CFR, down $25/mt week on week, SteelOrbis has learned.
At trading platforms, a deal for 170,000 mt of low-alumina BRBF fines with 62 percent Fe has been done at $190.9/mt CFR, while the same volume of Pilbara fines has been sold at the July index + $8.65/mt.
At ports, six deals have been reported on May 27. The biggest deal was for 20,000 mt of 61.68 percent Jimblebar fines at RMB 1,278/mt ($200/mt), delivery at Lanshan port.
During the given period, import iron ore prices have decreased significantly amid the central government’s measures to curb rapid rises in commodity prices, resulting in prevailing cautious sentiments among buyers and sellers. As the rainy season is approaching in eastern China, demand for steel will slacken, which may drag down iron ore prices further, and so steelmakers have been cautious and unwilling to build up stocks. The deliveries of iron ore will likely increase, which will exert a negative impact on prices from the supply side.
Iron ore futures prices at Dalian Commodity Exchange have moved up by 1.11 percent today, coming to RMB 1,046.5/mt ($163.5/mt) compared to May 26, while declining by RMB 96/mt ($15.0/mt) or 8.4 percent compared to May 20.
As of Thursday, May 27, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,817/mt ($753/mt), decreasing by RMB 369/mt ($58/mt) or 7.1 percent since May 20, while increasing by 0.23 percent compared to the previous trading day (May 26).
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
1,645 |
-105 |
256.9 |
-14.6 |
|
Yandi fines |
58 / 59 |
1,015 |
-92 |
158.5 |
-13.2 |
|
PB Fines |
62 |
1,278 |
-183 |
199.6 |
-27.1 |
|
PB iron ore lump |
62/63 |
1,700 |
-125 |
265.5 |
-17.6 |
|
Brazil fines |
63 |
1,348 |
-227 |
210.5 |
-33.8 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
1,274 |
-206 |
199 |
-31 |
|
Beipiao |
1,288 |
-192 |
201 |
-28 |
Price includes VAT.
$1 = RMB 6.403