Iron ore prices down from recent highs amid worsening demand outlook

Thursday, 08 July 2021 17:49:07 (GMT+3)   |   Shanghai
       

Import iron ore prices in China have moved down today, Thursday, July 8 compared to July 7 as the outlook for iron ore demand has worsened because of the government’s call to cut crude steel production in the second half of the year.

Iron ore fines with 62 percent Fe content have edged down by $3.4/mt compared to July 7, to $217/mt CFR. This level is $0.3/mt below that seen a week ago on July 1. Brazilian iron ore with 65 percent Fe has seen a decline of $3.2/mt today to $251/mt CFR, down $1.5/mt week on week, SteelOrbis has learned.

Today, the largest deal was for 90,000 mt of 60.5 percent Jimblebar blended fines was seen at COREX done at the August index - $7.9/mt for delivery during the whole of August.

During the given week, import iron ore prices have edged up slightly as market players expected for good demand after the 100th anniversary of the founding of the Communist Party of China amid the expected resumption of production by steelmakers.

But by Thursday, sentiment has worsened as more and more reports have been discussed in the market that steel mills will have to cut crude steel production in the second half to hold the total volume in 2021 in line with that of 2020. This is expected to put pressure on iron ore prices further in the near future. In addition, there has been seen slightly rising deliveries in the global market and increasing iron ore supplies arriving to China.

Iron ore futures prices at Dalian Commodity Exchange have moved down by 2.94 percent today, coming to RMB 1,187.5/mt ($183.5/mt) compared to July 7, while rising by RMB 21.5/mt ($3.32/mt) or 1.84 percent compared to July 1.

As of Thursday, July 8, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,393/mt ($833.5/mt), increasing by RMB 247/mt ($38.2/mt) or 4.8 percent since July 1, while increasing by 0.99 percent compared to the previous trading day (July 7).

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

1,865

5

288.2

0.8

Yandi fines

58 / 59

1,205

30

186.2

4.6

PB Fines

62

1,505

20

232.6

3.1

PB iron ore lump

62/63

1,895

5

292.8

0.8

Brazil fines

63

1,595

-5

246.5

-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

1,452

51

224

8

Beipiao

1,412

33

218

5

Price includes VAT. 

$1 = RMB 6.4705


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