Iron ore prices edge up from last week, but down from yesterday amid weak steel market

Import iron ore prices in China have moved down today, Thursday, May 26, while indicating rises compared to May 19. The decline reflected the weakness of the steel market, with demand not improving to the required extent, though some better sentiments had been seen earlier this week.

Iron ore fines with 62 percent Fe content have moved down today by $1.45/mt to $131.55/mt CFR. However, this level is $2.85/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has decreased by $0.9/mt today to $158.7/mt CFR, up $7.9/mt week on week, SteelOrbis has learned.

On May 26, eight deals totaling 58,000 mt of iron ore were concluded at Chinese ports.

During the given week, import iron ore prices have indicated a rebounding trend amid the rising trend of iron ore futures prices. Meanwhile, People’s Bank of China (PBC) announced on May 20 a cut in the above-five-year Loan Prime Rate (LPR) by 15 base points to 4.45 percent, boosting market sentiment. At the same time, steelmakers will resume production starting from mid-June or late June, which will bolster iron ore prices as demand will improve. It is thought that import iron ore prices may fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged down by 0.77 percent today to RMB 834/mt ($121.2/mt), while rising by 1.96 percent compared to May 19.

As of Thursday, May 26, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,505/mt ($675/mt), decreasing by RMB 107/mt ($16/mt) or 2.3 percent week on week, while declining by 0.99 percent compared to the previous trading day (May 11).

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 6.7524