Iron ore prices down further as outlook not promising

Thursday, 12 August 2021 16:58:17 (GMT+3)   |   Shanghai
       

Import iron ore prices in China have edged down on Thursday, August 12, compared to August 11, while also indicating decreases compared to last week as there are strong expectations of crude steel production cuts in Hebei in the second half of this year.

Iron ore fines with 62 percent Fe content have edged down by $3.5/mt today compared to August 11, to $161/mt CFR. This level is $7.3/mt below that seen a week ago on August 5. Brazilian iron ore with 65 percent Fe has moved down by $1.5/mt today to $192.8/mt CFR, down $8.1/mt week on week, SteelOrbis has learned.

On August 12, a deal for 170,000 mt of 61 percent PB fines, for shipment during August 31-September 9, was done at $158.4/mt CFR. Another contract for 170,000 mt of higher grade Fe 65 percent fines has been closed at September index + $4.4/mt.

Import iron ore prices have followed a downtrend over the past week, while transaction activities have remained at low levels amid continuing production restrictions and the worsening of the sentiment. The volume of iron ore arriving in the market has increased. The supply of iron ore is expected to be more plentiful in the near future, which will negatively affect ore prices. It is thought that import iron ore prices may decrease further amid the worsening of the Covid-19 pandemic situation in some regions of China.

Iron ore futures prices at Dalian Commodity Exchange (main contract i2201) have moved down by 2.16 percent today, coming to RMB 838/mt ($129.4/mt) compared to August 11, while decreasing by RMB 50.5/mt ($7.8/mt) or 5.7 percent compared to August 5.

As of Thursday, August 12, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,442/mt ($840.4/mt), increasing by RMB 69/mt ($10.7/mt) or 1.3 percent since August 5, while decreasing by 2.05 percent compared to the previous trading day (August 11).

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

1,457

-103

225.0

-16.1

Yandi fines

58 / 59

995

-78

153.7

-12.2

PB Fines

62

1,155

-67

178.4

-10.5

PB iron ore lump

62/63

1,487

-103

229.7

-16.1

Brazil fines

63

1,282

-46

198.0

-7.3

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

1,243

-116

192

-18

Beipiao

1,141

-181

176

-28

Price includes VAT.

$1 = RMB 6.4754


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