Iron ore prices decline after earlier gains as demand lacks promise

Import iron ore prices in China have moved down today, Thursday, June 9, as the demand outlook is not so good due to seasonal factors and the expected slowdown in construction activities In July and August. Prices have posted limited changes week on week.

Iron ore fines with 62 percent Fe content have edged down by $3.1/mt today to $143.6/mt CFR. However, this level is $0.2/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has declined by $2.6/mt on June 9 to $165.6/mt CFR, down $1.4 /mt week on week, SteelOrbis has learned.

On June 9, 13 deals for a total of 189,800 mt of iron ore have been concluded at ports.

During the given week, import iron ore prices fluctuated within a limited range amid the decreasing trend in iron ore futures prices. Following the lifting of the lockdown in Shanghai, transaction activities for rebar and wire rod improved slowly, which bolstered the iron ore market. However, since the rainy season in eastern China is approaching, demand for iron ore may be slack as construction activities will slow down. It is thought that import iron ore prices may move sideways in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have decreased by 1.2 percent today to RMB 924.5/mt ($138.4/mt), while declining by 0.32 percent week on week.

As of Thursday, June 9, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,791/mt ($717/mt), increasing by RMB 3/mt ($0.45/mt) or 0.06 percent since June 2, while rising by 0.65 percent compared to the previous trading day (June 8).

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT.

$1 = RMB 6.6811