Today, July 2, iron ore prices have edged up compared to yesterday amid higher trading activity in China, but have still remained below last week’s levels. Sentiment has been still bearish due to the weakening of demand and expectations of an improvement in shipments from Brazil. Iron ore futures prices have moved on a declining trend over the last two weeks.
Iron ore fines with 62 percent Fe content have moved up by $0.3/mt today to $99.7/mt CFR, while Brazilian iron ore with 65 percent Fe has also moved up by $0.2/mt to $112.3/mt CFR, SteelOrbis has learned.
At least six deals for 690,000 mt of iron ore have been concluded on July 2 in China at trading platforms, not including trades from Chinese ports. The two biggest deals were for 170,000 mt each of PB fines Fe 61-61.5 percent – one was concluded at $96.61/mt CFR and the other at the July index plus $2.3/mt.
Currently, steelmakers’ iron ore inventories are at relatively low levels and so some of them have been seeking to build up stocks, which has bolstered iron ore prices. However, the traditional summer offseason together with rainy weather and floods will negatively affect demand for iron ore, which will weaken support for iron ore prices. It is thought that iron ore prices will edge down slightly in the coming period, though they are unlikely to indicate sharp decreases amid tight supply at ports.
Iron ore futures prices at the Dalian Commodity Exchange have edged down by 0.4 percent today, coming to RMB 738.5/mt ($105/mt) compared to July 1, while decreasing by 3.5 percent compared to June 18.
On Thursday, July 2, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,573/mt ($506/mt), decreasing by RMB 42/mt ($6.0/mt) or 1.2 percent since June 18, while increasing by 0.34 percent compared to the previous trading day.
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
843 |
-17 |
119.5 |
-1.8 |
|
Yandi fines |
58 / 59 |
685 |
-20 |
97.1 |
-2.4 |
|
PB Fines |
62 |
765 |
-15 |
108.4 |
-1.6 |
|
PB iron ore lump |
62/63 |
839 |
-17 |
118.9 |
-1.8 |
|
Brazil fines |
63 |
841 |
-9 |
119.2 |
-0.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
808 |
-20 |
114 |
-2 |
|
Beipiao |
757 |
12 |
107 |
2 |
Price includes VAT.
$1 = RMB 7.0566