Iron ore prices decline on last working day before holiday

Iron ore prices for China have moved down today, January 23, compared to January 22, as customers have already started to leave the market ahead of the holiday which will start on Friday, January 24. Moreover, there have been some concerns regarding post-holiday demand for iron ore and steel due to the spread of the coronavirus in Wuhan. Iron ore fines with 62 percent Fe content have lost $2/mt today to $93.3/mt CFR, while Brazilian iron ore with 65 percent Fe has lost $2.3/mt to $109.2/mt CFR, SteelOrbis has learned.

Today is the last working day ahead of the Chinese New Year holiday, while China will return from its holiday on January 31, and so activity has been quiet in the iron ore market, with no deals done at trading platforms.

During the given week, since most Chinese steelmakers have been completing stock replenishments, iron ore prices have been above $95/mt CFR, only slipping on the last working day, mainly driven by weaker expectations but not by the real market situation. Due to the outbreak of the coronavirus in Wuhan which has a population of 11 million and is also a big steelmaking hub, the city authorities have closed all public transport in and out of the city starting from 10 AM today, including railways and airports. If the situation does not improve in the coming week, demand and production of steel will be impacted.

Iron ore futures prices at Dalian Commodity Exchange have lost RMB 15.5/mt ($2.25/mt) or 2.33 percent today, coming to RMB 649.5/mt ($94.3/mt) compared to January 22.

Rebar futures at Shanghai Future Exchange have decreased by RMB 65/mt ($9.4/mt) or 1.8 percent on Thursday since January 16, while declining by 1.02 percent compared to the previous trading day.  

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 6.888