Iron ore prices ease after exceeding $130/mt CFR owing to firm demand, supply shortage

Import iron ore prices in China have edged down today, Thursday, January 13, while indicating slight rises week on week. The prices passed the $130/mt CFR mark yesterday, supported by demand and good expectations ahead of the Chinese New Year holiday, while supply from Brazil has raised significant concerns due to heavy rainfall.

Iron ore fines with 62 percent Fe content have edged down by $4.5/mt today to $127.3/mt CFR. However, this level is $0.7/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has moved down by $4/mt compared to yesterday to $158/mt CFR, while up $2/mt week on week, SteelOrbis has learned.

On January 13, a deal of 80,000 mt of 56.7 percent Fe content Yangdi fines, for shipment during February 3-12, was done at the February index - $17.3/mt.

Import iron ore prices have continued their uptrend amid the limited growth in deliveries of iron ore from Brazil due to the rainy season. China’s demand for iron ore has been better as more blast furnaces have resumed production activities, which caused import iron ore prices to move up. The deliveries of iron ore may decrease in the near future, which will positively affect prices.  

Iron ore futures prices at Dalian Commodity Exchange have edged down by 0.68 percent today to RMB 726/mt ($114.3/mt), while rising by RMB 9/mt ($1.4/mt) or up 1.26 percent compared to January 6.

As of Thursday, January 13, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,633/mt ($729/mt), rising by RMB 139/mt ($33.3/mt) or 3.1 percent since January 6, while increasing by 0.7 percent compared to the previous trading day (January 12).

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 6.3542